Question

Under the gold standard exchange rate system A) the value of all currencies was determined by...

Under the gold standard exchange rate system

A) the value of all currencies was determined by market forces.

B) the value of all currencies was fixed in terms of gold.

C) all nations must stand ready and willing to provide gold in exchange for their home country currency.

(A) and (C)

(B) and (C)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Under the gold standard, a country's currency is directly linked to gold. all the countries fix the vaue of their currency in terms of specific amounts of gold. With the gold standard, countries agree to convert paper money into fixed amounts of gold. Gold standard was widely used in the 19th and 20th century. Under gold standard exchange rate is fixed, since every currency's value is fixed in terms of gold, so each currency is convertible into another currency at fixed rate.

So, option (B) and option (C) are correct.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
15.How the exchange rates were determined under the gold standard?
15.How the exchange rates were determined under the gold standard?
Distinguish between the gold standard and the Bretton Woods system in determine the currency exchange rate.
Distinguish between the gold standard and the Bretton Woods system in determine the currency exchange rate.
In a ___ exchange rate system, the values of a set of currencies are set against...
In a ___ exchange rate system, the values of a set of currencies are set against each other at some mutually agreed-on exchange rate. a. clean float b. floating c. fixed d. dirty-float e. pegged
Under a gold standard, A. countries should keep the supply of their domestic money constant. B....
Under a gold standard, A. countries should keep the supply of their domestic money constant. B. the production of gold greatly influences countries’ monetary policy. C. countries should keep the supply of foreign exchange less than their domestic money supply. D. countries should restrict the demand for foreign goods. E. most countries’ currencies were convertible directly into gold at fixed rates, but exchange rates between currencies were not fixed.
True or false and explain please. 1.Like gold standard, the currency board (foreign exchange rate policy)...
True or false and explain please. 1.Like gold standard, the currency board (foreign exchange rate policy) is doomed to fail. 2.For euro to become a world currency, it is necessary that the eurozone countries run long-term trade deficits. 3.For a country with deficit in current account, devaluation of domestic currency will help reduce the deficit immediately. 4.In a nation which pegs its currency to the U.S. dollar at fixed exchange rates, it is very likely that the central bank must...
During the mid-20th century most of the world's curriencies were in a fixed exchange rate system....
During the mid-20th century most of the world's curriencies were in a fixed exchange rate system. By the 1970s the fixed rates for the major curriencies could not be maintained and today many of the major currencies vary, or float, against each other. There are two issues to discuss, 1) what causes currency exchange rates to change, and 2) what is the effect on a country and its commerce when its currency exchange rate changes by, a) a strengthening of...
Explain how exchange rates are determined under a pegged exchange rate system. Then thoroughly discuss the...
Explain how exchange rates are determined under a pegged exchange rate system. Then thoroughly discuss the advantages and disadvantages of a pegged exchange rate system.
true or false: ) 1. Like gold standard, the currency board (foreign exchange rate policy) is...
true or false: ) 1. Like gold standard, the currency board (foreign exchange rate policy) is doomed to fail. (2) You are to buy ¥200m with Australian dollars through a forward contract maturing in 6 months. The forward price is F6(¥/A$)=100. If the spot rate at the maturity is S6(¥/A$)=80. You have a loss in the forward trading. (3) For euro to become a world currency, it is necessary that the eurozone countries run long-term trade deficits. (4) For a...
Under the Bretton-Woods adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable...
Under the Bretton-Woods adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable current account deficits by a) officially revaluing their currencies. b) officially devaluing their currencies. c) allowing their currencies to appreciate in the free market. d) allowing their currencies to depreciate in the free market.
A country that has been operating under a fixed exchange-rate regime falls into recession. All attempts...
A country that has been operating under a fixed exchange-rate regime falls into recession. All attempts at using fiscal polecat to lift the economy out of recession have failed. 1. If the central bank was to use monetary policy to help lift the economy out of the recession, it would want to (change, decrease or increase) the money supply and (changes decrease or increase) interest rates in the economy. 2. This change in interest rates would cause net capital outflow...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT