The "gold standard" is a system in which ________.
A) paper currency is backed by gold
B) people use gold as a medium of exchange
C) gold mining firms own the right to print currency
D) gold is imported into the United States in exchange for paper currency

Question

Quizplus · Accepted Answer

The gold standard is a system in which paper currency is backed by a fixed amount of gold reserves held by the government or central bank. This means that the value of the currency is directly tied to the value of gold. Under the gold standard, individuals could theoretically exchange their paper money for gold at a fixed rate. Therefore, option A is the correct answer.

The "Gold Standard" Is a System in Which ________