Which of the Following Statements Is True of the Gold
Which of the following statements is true of the Gold standard?
A) Gold standard was adopted only by the smaller nations of the world.
B) Currencies were pegged to gold under the gold standard.
C) Convertibility to gold was not guaranteed under the gold standard.
D) Gold standard was not helpful in maintaining balance-of-trade equilibrium.
Gold par value refers to the _____.
A) ratio of price of gold in a currency to price of gold in U.S.dollars
B) amount of a currency needed to purchase one ounce of gold
C) ratio of price of gold in a currency to price of gold in euros
D) amount of gold required to equal the reference currency that a nation is using
A country is said to be in balance-of-trade equilibrium when _____.
A) it has the potential to produce all goods that its residents want without engaging in foreign trade
B) the income its residents earn from exports is equal to the money its residents pay for imports
C) the country import all goods that its residents want by engaging in foreign trade
D) it has the potential to balance the production and procurement of the basic amenities that it needs
A country's trade balance is in surplus when _____
A) its exports are more than its imports
B) it experiences negative inflation
C) its exports equal the imports
D) the prices of commodities are low in the country