Asked by
henry fajilan
on Nov 26, 2024
Verified
Which of the following is not a condition of the international gold standard?
A) A nation must be willing to accept very wide fluctuations in its exchange rate.
B) A nation must allow gold to be freely exported and imported.
C) A nation must be willing to convert gold into paper money and vice versa at a stipulated rate.
D) A nation must define its monetary unit in terms of a certain quantity of gold.
International Gold Standard
A monetary system in which the value of a country's currency is directly linked to a specific amount of gold, facilitating stable exchange rates and international trade.
Monetary Unit
The standard unit of value of a currency, used as a medium of exchange within an economy.
Exchange Rate
The value of one currency for the purpose of conversion to another, dictating how much of one currency can be exchanged for another currency.
- Master the key aspects of the gold standard, taking into account its impact on global monetary policy and the realignment of the balance of payments.
Verified Answer
ER
Learning Objectives
- Master the key aspects of the gold standard, taking into account its impact on global monetary policy and the realignment of the balance of payments.