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Which of the Following Was a Disadvantage of Using Gold

Question 96

Multiple Choice

Which of the following was a disadvantage of using gold as a medium of exchange in international trade?


A) The weight of gold made transporting it expensive.
B) Gold was not in high demand.
C) The gold standard imposed lenient monetary policies on countries that participated in the system.
D) The gold standard increased the risk in exchange rates as it maintained highly flexible exchange rates between currencies.

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