Question

The fixed exchange rate system was used until 1971.

Question 3 options:
True
False

Answer 1

The answer is True :)

Answer 2

True

Step-by-step explanation:

The fixed exchange rate came to an end in 1971 in the US.

Before 1971, the US currency value was tied to an ounce of gold. In 1971 the US economy was undergoing a recession. The US authorities bought all the gold value backing the dollar to end the recession. The dollar became a fiat currency.

The year also marked the beginning of the floating exchange system for the dollar.