Which of the following statements about the gold standard is true?
A)London was the undisputed center of international trade and finance
B)international trade and international capital flows were mostly unrestricted
C)International liquid capital flows were mostly stabilizing
D)all of the above

Question

Quizplus · Accepted Answer

A) London was the undisputed center of international trade and finance during the gold standard era as the British pound sterling was the reserve currency.
B) Under the gold standard, international trade and capital flows were mostly unrestricted as countries had to maintain fixed exchange rates, which made it difficult to impose restrictions on capital flows.
C) International liquid capital flows were mostly stabilizing as countries tend to export gold in surplus and import gold in deficit, which helped correct imbalances in the balance of payments.

Which of the Following Statements About the Gold Standard Is