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- Subject
- Foreign Exchangeeconomics-mcqs › foreign-exchange
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What major change did most countries make regarding exchange rates in 1971?
Multiple choice question for Foreign Exchange. Select an option, then review the explanation below.
Explanation
In 1971, the majority of countries stopped maintaining fixed exchange rates and instead permitted their currencies' values to fluctuate according to supply and demand in the foreign exchange markets.
More Foreign Exchange MCQs
Practice related questions from the same subject.
- 1.In a floating exchange rate system, what is the typical trend observed regarding currency values?
- 2.What term describes the increase in the value of one currency compared to another?
- 3.What is the typical impact of a fiscal expansion in the UK on the value of the pound sterling?
- 4.What do we call exchange rates that fluctuate based solely on market supply and demand without government intervention?
- 5.What type of exchange rate system was established by the agreements made at the 1944 Bretton Woods conference?