Which of the following is an advantage of using the gold standard?
A) The standard makes sure that goods are not priced out from markets due to inflation.
B) The standard does not require a commitment from nations to maintain its currency's value.
C) The standard effectively prevents the devaluation of currencies across the world.
D) It contains a powerful mechanism for achieving balance-of-trade equilibrium by all countries.

Question

Quizplus · Accepted Answer

The gold standard helps achieve balance-of-trade equilibrium because it requires countries to settle their international balances in gold, which naturally limits trade imbalances.

Which of the Following Is an Advantage of Using the Gold