The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-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 the following:
A)an exchange standard.
B)a gold standard.
C)a reserve currency standard.
D)a crawling peg standard.
E)a currency board standard.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-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 the following:
A)an exchange standard. 
B)a gold standard. 
C)a reserve currency standard. 
D)a crawling peg standard. 
E)a currency board standard.

Quizplus · Accepted Answer

The Answer is B

The Figure Below Shows the Demand (D) and Supply (S)