Which of the following statements is true of the Gold standard?
A) Gold standard was adopted only by the smaller nations of the world.
B) Currencies were pegged to gold under the gold standard.
C) Convertibility to gold was not guaranteed under the gold standard.
D) Gold standard was not helpful in maintaining balance-of-trade equilibrium.

Question

Quizplus · Accepted Answer

Under the gold standard, currencies were pegged to gold, meaning that the value of a currency was fixed to a specific amount of gold. This helped to facilitate international trade and transactions as there was a common standard for measuring value. The gold standard was adopted by many countries, including major world powers like the United States and Great Britain. While convertibility to gold was not always guaranteed, the overall stability of the gold standard helped to maintain balance-of-trade equilibrium.

Which of the Following Statements Is True of the Gold