Which of the following was a feature of the gold standard?

Question

Quizplus · Accepted Answer

Slow gold production could lead to deflation, as the limited supply of gold would make it more valuable and increase the purchasing power of each unit of currency backed by gold. The other options are incorrect: A is incorrect because the gold standard limited countries' ability to control their own monetary policies, as their currency was tied to the value of gold. B is incorrect because surplus gold would increase the money supply, not decrease it. D is incorrect because exchange rates were generally stable under the gold standard, as they were fixed to the price of gold.

Which of the Following Was a Feature of the Gold