For a Country to Be on a "Gold Standard", It

question 75

Multiple Choice

For a country to be on a "gold standard", it must

• A)use gold coins as money and promise never to debase its coins.
• B)use gold as money, but not necessarily in the form of gold coins.
• C)make its currency convertible into gold at a fixed rate of exchange.
• D)use gold as fiat money.
• E)use gold coins as money.

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Definitions:

Depreciation

The process by which a business spreads out the cost of a capital asset over its expected useful life.

Double-Declining-Balance

A method of accelerated depreciation which doubles the straight-line depreciation rate, resulting in a faster depreciation of assets in the early years of their life.

Depreciation Expense

The organized allocation of a tangible asset's expenditure over its life of usefulness.

Straight-Line Method

A method of depreciation that allocates an equal amount of the asset's cost to each accounting period over its useful life.