A Problem with the Operation of the Gold Standard in the World

question 126

Multiple Choice

A problem with the operation of the gold standard in the world economy was that

• A) it involved too much government intervention in the economy.
• B) the world economy was subject to too much inflation.
• C) a country did not have control of its domestic monetary policy.
• D) it caused the Great Depression.

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Definitions:

Primary Market

The financial market where new securities are issued and sold for the first time.

Regulatory Dialectic

The pressures financial institutions and regulatory bodies exert on each other.

Market Value

The rate at which the market currently allows the buying or selling of a service or asset.

Firm's Equity

The value of a company owned by its shareholders, representing the residual assets of the company after debts have been subtracted.