A gold standard is effectively
A) a fixed exchange rate.
B) a flexible exchange rate.
C) a managed exchange rate.
D) the only method to cure depressions.

Question

Quizplus · Accepted Answer

A gold standard is a system in which the value of a currency is based on a fixed exchange rate to gold. This means that a country has to hold a certain amount of gold in reserve to back up the value of its currency. It is a fixed exchange rate because the value of the currency is tied to a fixed amount of gold.

A Gold Standard Is Effectively