Under the gold standard,________.
A) currency values were determined by supply and demand
B) countries agreed to buy or sell their paper currencies for gold
C) countries were free to adopt any nation's exchange-rate system
D) the dollar's value was allowed to fall on currency markets

Question

Quizplus · Accepted Answer

Under the gold standard, countries agreed to buy or sell their paper currencies for gold. This meant that the value of a country's currency was determined by the amount of gold it held in reserve. Other currencies could be exchanged for gold at a fixed rate, which helped to maintain stability in exchange rates.

Under the Gold Standard,________