After the Second World War, the Bretton Woods system came into being. Under the Bretton Woods Agreement, currencies were pegged to the price of gold, and the United States dollar was seen as a reserve currency linked to the price of gold. In 1958, the Bretton Woods system became fully functional, as national currencies became convertible. In order to convert currencies, countries settled their international balances in dollars, while United States dollars were fully convertible to gold. The exchange rate applied at the time was $35/ounce. The system had worked well for a while, but eventually dissolved between 1968 and 1973. The overvaluation of the United States dollar led to concerns among the members of the system over the exchange rates and their tie to the price of gold. An attempt to revive the fixed exchange rates failed and by March 1973, major currencies began to float against each other. The correct answer is C.