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:

Atomic Symbol

A one- or two-letter notation used to represent an element, based on its Latin name.

Copper

A red-orange metallic element that is ductile and conductive, used extensively in electrical wiring and plumbing.

Atomic Symbol

A one or two-letter notation representing a chemical element (e.g., H for hydrogen, O for oxygen) based on its name, often derived from Latin.