Question

Since both SDRs and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to gold rather than dollars.

A) True
B) False

Answer 1

The statement is False. The international monetary system transitioned away from the gold standard, making currencies like the U.S. dollar fiat currencies not backed by gold.

Step-by-step explanation:

The statement 'Since both SDRs and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to gold rather than dollars' is False.

In the early 1970s, the international monetary system transitioned away from the gold standard and currencies became fiat currencies, meaning their value is not backed by a physical commodity like gold.

Today, monetary statistics are typically reported in national currencies, such as the U.S. dollar, rather than gold.