When the Gold Standard Ended ________

question 122

Multiple Choice

When the gold standard ended ________.

• A) currency values were determined by supply and demand
• B) central banks sometimes manipulated exchange rates
• C) countries agreed to buy or sell their paper currencies for gold
• D) countries were free to adopt whatever exchange rate system best met their own requirements
• E) the dollar's value was allowed to fall on currency markets

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Definitions:

Price Index

A measure showing the average level of prices for a specific set of goods and services over a period, indicating inflation or deflation.

Base Year

A specific year chosen as a point of reference or comparison for financial or economic data.

Price Index

A statistical measure that shows changes in the price level of a basket of consumer goods and services over a period of time.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.