A review of the evolution of the Global Monetary System shows that capital flows dominate trade in which of the following eras EXCEPT:
A) Classical Gold Standard.
B) Fixed Exchange Rates, 1945-1973.
C) The Floating Era, 1973-1997.
D) The Emerging Era, 1997-Present.

Question

Quizplus · Accepted Answer

During the Classical Gold Standard era, trade was dominated by the exchange of physical goods and the flow of gold served as a self-regulating mechanism for balancing trade. During this period, capital flows played a lesser role in shaping the international monetary system compared to other eras.

A Review of the Evolution of the Global Monetary System