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

Question

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

Quizplus · Accepted Answer

President Nixon announced that the United States would no longer convert dollars into gold, a policy that had been in place since the end of World War II under the Bretton Woods Agreement. This effectively ended the gold standard and marked the beginning of a new era of floating exchange rates.

In the Context of the Global Money System, in August