Under the gold standard, the government must have enough gold to back up any

Question

Quizplus · Accepted Answer

Under the gold standard, the money supply was directly linked to the amount of gold held by the government. Therefore, any increase in the money supply must be backed up by an equivalent amount of gold held by the government. Other options such as changes in exchange rates or foreign currency deposits are not directly linked to the gold standard.

Under the Gold Standard, the Government Must Have Enough Gold