The term "Nixon shock" describes which of the following actions?
A. Nixon's announcement of a gradual troop withdrawal in Vietnam
B. Nixon's impeachment for his role in covering up illegal activity
C. Nixon's insistence that all U.S. allies jion the Bretton Woods system
D. Nixon's decision to end the U.S. dollar's convertibility to gold

The term Nixon Shock was coined to use to describe Former US President Nixon's action in 1971 that ultimately led to the collapse of Bretton Woods. HIs decision led to the unilateral cancellation of the international convertibility of US dollars to gold.

Answer Link

saadhussain514 saadhussain514 · Answer 2 · 2018-07-29T19:29:29+02:00

Correct answer choice is :

D) Nixon's decision to end the U.S. dollar's convertibility to gold

Explanation:

The Nixon shock was a set of financial means initiated by United States President Richard Nixon in 1971, the numerous important of which was the single removal of the immediate worldwide convertibility of the United States dollar to gold. While Nixon's steps did not formally terminate the current Bretton Woods system of international economic change, the respite of one of its key elements completely presented the Bretton Woods system defective. While Nixon publicly stated his purpose to continue direct convertibility of the money after changes to the Bretton Woods system had been completed, all efforts at reformation declared worthless.