How was the global monetary system affected by major events in the 1970s, including the OPEC oil crisis in 1971 and the loss of confidence in the U.S. dollar in the late 1970s?
A) The value of the U.S. dollar stabilized.
B) Exchange rates become much more volatile.
C) Exchange rates become more predictable.
D) The fixed rate system was adopted to calculate exchange rates.
E) The European Monetary System as an institution has gained more prominence.

Question

Quizplus · Accepted Answer

The OPEC oil crisis in 1971 and the loss of confidence in the U.S. dollar in the late 1970s led to a decrease in the value of the U.S. dollar and an increase in the volatility of exchange rates.

How Was the Global Monetary System Affected by Major Events