Which of the Following Is a Reason Why Nations Began

question 41

Multiple Choice

Which of the following is a reason why nations began abandoning the gold standard in the 1930s?

• A) World supply of gold dropped drastically in the 1930s, severely limiting a country's ability to increase its money supply.
• B) Imbalances in a country's balance of payments can be corrected only through changes in the entire economy.
• C) In order to correct imbalances in its balance of payments, a country was forced on its trading partners to intervene in currency markets.
• D) Some nations started hoarding gold in order to manipulate relative exchange rates.

---

Definitions:

Acquisition Cost

The total cost incurred for acquiring an asset, including purchase price, installation charges, and other associated expenses.

Sales Taxes

Taxes imposed on the sale of goods and services that are collected by retailers and passed on to the government.

Property Taxes

Taxes levied by local governments based on the value of property, including land and buildings, owned by individuals or companies.

Attorney Fees

Payments made to lawyers for legal services rendered.