Which of the following describes the U.S. dollar?(1 point)

Question

Responses

The U.S. dollar is currently valued at a fixed rate of $35 per ounce.
The U.S. dollar is currently valued at a fixed rate of $35 per ounce.

The British pound sterling replaced the U.S. dollar as the dominant global reserve currency at the end of World War II.
The British pound sterling replaced the U.S. dollar as the dominant global reserve currency at the end of World War II.

The use of the U.S. dollar in the world market has been stable for 20 years.
The use of the U.S. dollar in the world market has been stable for 20 years.

The Bretton Woods Conference valued the U.S. dollar using mainly floating exchange rates.

Answer 1

None of the statements provided are accurate regarding the current status of the U.S. dollar:

1. The U.S. dollar is currently valued at a fixed rate of $35 per ounce. - This statement is incorrect. The U.S. dollar is no longer pegged to gold since the end of the Bretton Woods system in 1971.

2. The British pound sterling replaced the U.S. dollar as the dominant global reserve currency at the end of World War II. - This statement is also incorrect. The U.S. dollar became the dominant global reserve currency after World War II with the Bretton Woods Agreement in 1944.

3. The use of the U.S. dollar in the world market has been stable for 20 years. - This statement could be seen as vague, but the U.S. dollar’s position as the world's primary reserve currency has remained relatively stable, although it fluctuates in response to various economic conditions.

4. The Bretton Woods Conference valued the U.S. dollar using mainly floating exchange rates. - This is incorrect; the Bretton Woods system established fixed exchange rates between currencies and the U.S. dollar was pegged to gold.

Based on the analysis of each statement, none of them correctly describe the U.S. dollar's status or history.