The gold standard is a type of
A) fixed exchange rate system.
B) flexible exchange rate system.
C) floating exchange rate system.
D) barter currency system.

Question

Quizplus · Accepted Answer

The gold standard is a fixed exchange rate system where the value of a currency is fixed to a specific amount of gold. This system was prevalent in the early 20th century, where currencies were backed by gold reserves held by central banks. Countries adhering to the gold standard would have to maintain the gold standard by buying or selling gold to stabilize the value of their currencies.

The Gold Standard Is a Type of