Which of the following statements is true about the gold standard?
A) Given a common gold standard,the value of any currency in units of any other currency was easy to determine.
B) Establishing a gold standard seemed impractical as the volume of international trade expanded in the wake of the Industrial Revolution.
C) A drawback of the gold standard was that it failed to provide a mechanism for achieving balance-of-trade equilibrium by all countries.
D) Under the gold standard,when a country has a trade deficit,there will be a net flow of gold from the other countries to that country.
E) The gold standard refers to the use of gold coins as a medium of exchange between countries involved in international trade.
Correct Answer:
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