Question

The fixed exchange rate system was used until 1971.

Question 3 options:
True
False

Answer 1

It is TRUE that the fixed exchange rate system was used until 1971

Step-by-step explanation:

The fixed exchange rate was used to keep the currency value within a narrow band. most industrialized nation used this fixed interest rate system until early 1970's before switching to the floating exchange rates where the prices on the FOREX market sets the value for them. although the fixed interest rate is been used by developing nations to aid exporters and importers and also to keep inflation down

Answer 2

True

Step-by-step explanation:

The exchange rate is a system applied to a government or national bank ties the nation's monetary authority conversion standard to another nation's cash or the cost of gold.

At the point when America after war parity of installments surplus went to a shortfall during the 1950s and 1960s, the periodic conversion scale modifications allowed under the understanding eventually demonstrated lacking. In 1973, President Richard Nixon expelled the United States from the best quality level, introducing the time of coasting rates.