Under the gold standard:
A)each nations defines the price of gold in terms of its currency and then stands ready to buy and sell any amount of gold at that price
B)there is a fixed relationship between any two currencies called the mint parity
C)the exchange rate is determined by demand and supply between the gold points and is prevented from moving outside the gold points by gold shipments
D)all of the above

Question

Quizplus · Accepted Answer

The gold standard system involves all of the above - each nation defining the price of gold in terms of its currency and standing ready to buy and sell any amount of gold at that price, a fixed relationship between any two currencies called the mint parity, and the exchange rate being determined by demand and supply between the gold points and prevented from moving outside the gold points by gold shipments.

Under the Gold Standard