Which of the following statements is true of the gold standard?
A) The gold standard was adopted only by the smaller nations of the world.
B) Currencies were pegged to gold under the gold standard.
C) Convertibility to gold was not guaranteed under the gold standard.
D) The gold standard was not helpful in maintaining balance-of-trade equilibrium.

Question

Quizplus · Accepted Answer

Pegging currencies to gold and guaranteeing convertibility is known as the gold standard. By 1880, most of the world's major trading nations, including Great Britain, Germany, Japan, and the United States, had adopted the gold standard.

Which of the Following Statements Is True of the Gold