In 1971, most countries, including the United States,Group of answer choicesreturned to the gold standard.adopted a new system of fixed exchange rates.adopted a single, internationally accepted currency whose use is limited to international transactions.gave up trying to fix exchange rates formally and began allowing them to be determined essentially by supply and demand.

Why did the United States finally abandon the gold standard in the 1970s?A.Large quantities of dollars were being redeemed for gold.B.Currencies from other countries become stronger.C.Investors refused to accept U.S. fiat currency.D.Most other countries adopted the gold standard.

Multiple Select QuestionSelect all that applyWhich of the following are exchange-rate systems that the world's nations have used over the past 130 years?Multiple select question.Gold standard, which implicitly created fixed exchange ratesFloating exchange rates, which mix mostly flexible exchange rates with occasional currency interventionsGold standard, which implicitly created flexible exchange ratesBretton Woods system, which was a fixed exchange rate indirectly tied to gold

Multiple Choice QuestionSince 1971, most countries have used which type of exchange-rate system?Multiple choice question.A fixed exchange-rate system under full government controlA fixed exchange-rate system with limited government interventionA flexible exchange-rate system with occasional government interventionA floating exchange-rate system without government intervention

Confronted with a serious economic crisis, Ecuador officially adopted the US dollar as its legal tender in January 2000. This is known as __________.Group of answer choicescurrency substitution.currency pegfloating exchange rate regimea managed float

Which of the following is a characteristic of the exchange rate agreement in the European Monetary System (EMS)?Group of answer choicesGermany suffered from hyperinflation and this cause its currency to devalue rapidly.Each country fixes the price of gold in terms of their domestic currency.USD was pegged at USD 35 per ounce of gold.Member countries’ exchange rates were allowed to fluctuate within a narrow band