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Answer (C) is correct . Gold has no special role in the modern international monetary system. The present system is based upon managed floating currency exchange rates. Consequently, gold is treated as a commodity, the price of which depends upon supply and demand.

Answer (A) is incorrect because Although most exchanges quote the price of gold in U.S. dollars, the dollar’s value is not linked to that of gold.
Answer (B) is incorrect because Floating exchange rates have existed since about 1973. Tying currency values to a gold standard, in effect, fixes exchange rates.
Answer (D) is incorrect because The only reserves of the IMF are international currencies.