Under the Gold Standard,the Government Must Have Enough Gold to Back

question 20

Multiple Choice

Under the gold standard,the government must have enough gold to back up any

• A)increase in money demand.
• B)increase in the money supply.
• C)change in its currency's exchange rate.
• D)foreign currency deposits in its central bank.

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Definitions:

Revaluation Surplus

The increase in value of an asset, reflected in the company's financial statements, from re-assessing its carrying value to a higher current market value.

Treasury Stock

Shares that were issued and then repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Classification

The systematic arrangement of business transactions and accounts in categories or groups based on similar characteristics for financial reporting and analysis.

Distribution

The process of making a product or service available for the consumer or business user that needs it.