The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-The gold standard ended in the 1970s because the gold supplies failed to keep pace with the increase in money supplies required for industrialization and rapid economic growth witnessed in this era.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-The gold standard ended in the 1970s because the gold supplies failed to keep pace with the increase in money supplies required for industrialization and rapid economic growth witnessed in this era.

Quizplus · Accepted Answer

The question is not related to the given figure depicting the foreign exchange market for British pounds traded for U.S. dollars. The question is about the gold standard, which is not mentioned or depicted in the figure. However, the statement in the question is false because the gold standard ended primarily due to the difficulties countries faced in maintaining fixed exchange rates and the need for more flexibility in monetary policy. The increase in money supplies for industrialization and economic growth was not the primary reason for the end of the gold standard.

The Figure Given Below Depicts the Foreign Exchange Market for British