Consider a country Atlantica,using dollars ($) as its currency.If this country sets a price for gold,and then issues currency such that the amount in circulation is equivalent to the value of gold held in reserve,it is said to be following:
A)a gold exchange standard.
B)a gold standard.
C)a reserve currency standard.
D)a crawling peg standard.
E)a currency board standard.

Question

Quizplus · Accepted Answer

A gold standard is a monetary system in which a country defines the value of its currency in terms of a fixed weight of gold and holds gold in reserve. In this case, Atlantica is setting a price for gold and issuing currency equivalent to the value of gold held in reserve, which is characteristic of a gold standard.

Consider a Country Atlantica,using Dollars ($) as Its Currency