A country "on" the gold standard:

Question

Quizplus · Accepted Answer

A country on the gold standard promised to exchange its currency for gold at an established rate. This meant that the value of the country's currency was tied to the value of gold, and the country could not simply print more money without having the gold to back it up.

Option A is incorrect, as a country on the gold standard could not simply print as much paper money as it needed. It was limited by the amount of gold it held, as the value of the currency was tied to the value of gold.

Option B is incorrect, as a country on the gold standard did not only use gold to make purchases. It used its currency, which was backed by gold, to make purchases.

Option D is incorrect, as a country on the gold standard did not have its loans from other countries guaranteed by gold. The gold standard simply meant that the value of the country's currency was tied to the value of gold.

A Country "On" the Gold Standard