One Reason for the Collapse of the Gold Standard in 1939

question 39

Multiple Choice

One reason for the collapse of the gold standard in 1939 was the

• A) difficulty and complexity in using the gold standard to determine the exchange rate.
• B) agreement by governments to convert paper currency into gold on demand at a fixed rate.
• C) cycle of competitive currency devaluations by various countries.
• D) expansion in the volume of international trade after the Industrial Revolution.
• E) inability of the gold standard to act as a mechanism for achieving balance-of-trade equilibrium by all countries.

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Definitions:

Weiner's Attribution Theory

A theory that explains how individuals infer the causes of their own and others' behavior, attributing them to either internal dispositions or external situations.

Intrinsic

Describes motivation or values driven by internal rewards, such as personal satisfaction or fulfillment, rather than external pressures or rewards.

Extrinsic

Pertaining to external factors or influences, often referring to motivation that comes from outside an individual, such as rewards or punishments.

Moral Values

Values or types of behavior that serve as a basis for ethical conduct and are formed through the influence of the family, culture, or society.