Read the following passage and mark the letter A, B, C or D on your answer sheet to indicate the best answer to each of the following questions
The dollar is one of the most recognizable currencies in the world, renowned for its widespread use and influence. However, its origins trace back to Europe, where the term "dollar" evolved from the word "thaler," a silver coin first minted in the 16th century in the Bohemian region of Joachim’s. These coins became a reliable standard of trade across Europe due to their consistent silver content and quality. When European settlers journeyed to the Americas, they brought the concept of the "dollar" with them, setting the stage for its adoption in the New World.
In 1792, the United States Congress passed the Coinage Act, marking a pivotal moment in American monetary history. This act established the dollar as the country's official currency and defined its value in terms of silver and gold, aiming to create a stable and trustworthy monetary system. For much of its early history, the dollar was backed by precious metals, ensuring confidence in its value. However, in the 20th century, the dollar transitioned to a fiat currency system, meaning its value was no longer tied to gold or silver but backed by the US government's credibility. This shift allowed for more flexibility in managing the economy and implementing monetary policies.
The dollar's rise to global prominence began after World War II with the Bretton Woods Agreement of 1944. This accord pegged many international currencies to the US dollar, which was in turn linked to gold. Additionally, the agreement established the dollar as the world's primary reserve currency. Even after the collapse of the Bretton Woods system in the 1970s, the dollar maintained its dominance due to the strength and stability of the US economy.
Today, the dollar serves not just as a currency but as a symbol of economic power and reliability. It is used extensively in global trade, international investments, and as a benchmark for evaluating other currencies. Despite competition from emerging currencies like the euro and the Chinese yuan, the dollar remains at the heart of the global financial system, reflecting its enduring influence.
Which of the following is NOT mentioned in the passage about the history of the dollar?
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