Which of the following statements is true about the changes in the world monetary system since March 1973?
A) The value of the U.S. dollar has never seen a fall ever since.
B) Exchange rates have become much more volatile.
C) Exchange rates have 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

Since March 1973, exchange rates have become much more volatile due to the abandonment of the fixed exchange rate system and the rise of floating exchange rates. The value of the U.S. dollar has fluctuated over time, and exchange rates have become less predictable. The European monetary system was established in 1979, but it is not the only institution that has gained prominence since 1973. Therefore, option B is the correct choice.

Which of the Following Statements Is True About the Changes