Statement I: The U.S.and nearly all other industrial nations now operate on a system of fixed exchange rates.
Statement II: In 1971,the U.S.abandoned the gold exchange standard.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Fixed Exchange Rates

are government-set exchange rates where a currency is pegged at a certain value against another currency, basket of currencies, or another measure of value.

Gold Exchange Standard

A monetary system in which currencies are valued in terms of a specified amount of gold, and governments agree to exchange currency for gold at the set price.