Which of the following was an effect of U.S.President Richard Nixon's decision to take the dollar off the gold standard?
A) The Japanese yen gained strength in currency markets,with a corresponding decline in the value of the Swiss franc.
B) Nation-states such as Italy and Britain tied their currencies to the U.S.dollar.
C) Second World nations found it harder to get loans from First World banks.
D) International financial institutions escaped the control of national political authorities.

Question

Quizplus · Accepted Answer

Nixon's decision to take the dollar off the gold standard in 1971 effectively ended the Bretton Woods system that had governed international finance since the end of World War II. This led to a shift towards floating exchange rates and the development of an international financial system that was less reliant on national political authorities. Thus, international financial institutions such as the International Monetary Fund (IMF) and World Bank gained greater influence and power in global finance.

Which of the Following Was an Effect of U