Most countries abandoned convertibility and the gold standard in 1931 because:
A) there was a sharp decline in the amount of gold mined
B) the Bretton Woods Agreement was signed
C) of the cycle of devaluations resulting from the Great Depression
D) of the collapse of the Weimar Republic and the rise of Germany
E) of the preference for a managed float system

Question

Quizplus · Accepted Answer

The cycle of devaluations resulting from the Great Depression led to most countries abandoning convertibility and the gold standard in 1931. As countries devalued their currencies to gain a competitive advantage in trade, it became increasingly difficult to maintain fixed exchange rates and a gold-backed monetary system.

Most Countries Abandoned Convertibility and the Gold Standard in 1931