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

-Which of the following can be categorized as a commodity money standard?
A)The pegged exchange rate standard
B)The free float standard
C)The managed float standard
D)The reserve currency standard
E)The gold standard

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-Which of the following can be categorized as a commodity money standard?
A)The pegged exchange rate standard 
B)The free float standard 
C)The managed float standard 
D)The reserve currency standard 
E)The gold standard

Quizplus · Accepted Answer

The gold standard is an example of a commodity money standard, where the value of a currency is linked to a fixed amount of a valuable commodity, in this case, gold.

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