In the Context of the Global Money System,in August 1971

question 105

Multiple Choice

In the context of the global money system,in August 1971 President Nixon made the following two announcements: (1) a new 10 percent tax on imports would remain in effect until the trading partners of the U.S.agreed to revalue their currency against the dollar and (2) _____.

• A) the dollar was no longer convertible into gold
• B) the U.S. would no longer support the World Bank
• C) the U.S. planned to devalue its currency by 20 percent
• D) the U.S. planned to call for a second Bretton Woods conference
• E) the U.S. would sell its entire gold reserve