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Q.

Choose that given statement is true/false:


The Fixed exchange rates collapse.


see full answer

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a

True

b

False 

answer is A.

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Detailed Solution

The above statement is true.
The Fixed exchange rates collapse. The US's finances and ability to compete were impacted negatively in the 1960s by the escalating costs of its foreign involvement. As the predominant currency around the globe, the US dollar no longer had widespread faith. It was unable to keep up with gold in terms of value. It caused the fixed exchange rate system to fail and the implementation of a floating exchange rate system. The global financial system underwent significant changes starting in the middle of the 1970s. Earlier, nations seek loans and development help from international institutions.
 
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Choose that given statement is true/false:The Fixed exchange rates collapse.