Question
Here is the question : WHICH PRESIDENT TOOK THE U.S. OFF THE GOLD STANDARD?
Option
Here is the option for the question :
- Lyndon B. Johnson
- Richard Nixon
- George H.W. Bush
- Theodore Roosevelt
The Answer:
And, the answer for the the question is :
Explanation:
In 1971, then-President Richard Nixon made the announcement that the United States government would no longer exchange gold for a predetermined sum of cash. This helped to calm concerns about an inflated dollar, which had a negative impact on the country’s ability to trade with other countries. This was regarded as the conclusion of the efforts that had been taken during the Great Depression by President Franklin D. Roosevelt in order to preserve the economy from runs on banks.
Richard Nixon, the 37th President of the United States, is known for his decision to take the U.S. off the gold standard in 1971. The gold standard had been in place in the U.S. since 1900, and it tied the value of the U.S. dollar to the price of gold.
Under the gold standard, the U.S. government promised to redeem paper money with gold at a fixed rate of $35 per ounce. This meant that the value of the U.S. dollar was directly tied to the amount of gold held by the U.S. government.
However, the gold standard also had some drawbacks. It limited the ability of the government to control the money supply and adjust interest rates, which could sometimes lead to economic instability. It also required the government to maintain a large supply of gold, which could be expensive and difficult to manage.
In 1971, Nixon announced that the U.S. would no longer redeem dollars for gold, effectively ending the gold standard. This decision, known as the Nixon Shock, was driven by a number of factors, including the rising cost of the Vietnam War and concerns about the stability of the international monetary system.
The decision to abandon the gold standard had significant implications for the global economy. It allowed the U.S. government to print more money and control interest rates more effectively, but it also led to a decline in the value of the U.S. dollar relative to other currencies. It also contributed to the rise of floating exchange rates, which allowed currencies to fluctuate freely based on market demand.
the decision to abandon the gold standard is widely seen as a significant moment in the history of the U.S. economy. Today, the U.S. uses a system of fiat currency, in which the value of the dollar is not tied to the price of gold or any other commodity.
Richard Nixon is the President who took the U.S. off the gold standard in 1971. The decision to abandon the gold standard had significant implications for the U.S. economy and the global monetary system. While it remains a controversial decision to this day, it is widely seen as a significant moment in the history of U.S. monetary policy.