Under the gold standard, because all currencies had values fixed in units of gold
A) exchange rates were effectively fixed.
B) there were no exchange rates.
C) exchange rates were set to a crawling peg.
D) none of the above

Question

Quizplus · Accepted Answer

Under the gold standard, all currencies were pegged to a fixed value of gold. This meant that the exchange rates between different currencies were effectively fixed, although minor fluctuations could occur due to differences in the gold content of currencies or changes in the demand for gold. Therefore, A is the correct choice as exchange rates were effectively fixed under the gold standard.

Under the Gold Standard, Because All Currencies Had Values Fixed