Increased volatility of interest rates can be traced back to:
A) 1971, with the collapse of the Bretton Woods system
B) 1979, when the US Federal Reserve System shifted from a policy of interest rate targeting to a policy of money supply targeting
C) 1973-74, with the OPEC-led oil price rise
D) 1989, with the agreement to establish NAFTA

Question

Quizplus · Accepted Answer

In 1979, the US Federal Reserve shifted its policy focus from targeting interest rates to targeting money supply, leading to increased interest rate volatility as the Fed allowed rates to fluctuate more in response to changes in money supply.

Increased Volatility of Interest Rates Can Be Traced Back To