The gold standard is a type of fixed exchange rate system where a country's currency is pegged to a specific weight of gold. This means that the value of a currency is fixed and can only fluctuate within a narrow band. The gold standard was widely used until the early 20th century, but it has since been largely abandoned in favor of floating exchange rate systems.

Solved

The Gold Standard Is

Question 71

Multiple Choice

The gold standard is

A) a Type of floating exchange rate system.
B) a Type of managed flexible exchange rate system.
C) a Type of fixed exchange rate system.
D) a purely floating exchange rate system.

Correct Answer: