Under a Gold Standard

question 167

Multiple Choice

Under a gold standard,

• A)with a balance of payments deficit, interest rates would fall and attract foreign capital.
• B)a deficit in the balance of payments increased a nation's money supply automatically.
• C)all currencies were defined in terms of gold.
• D)when a nation had a deficit in its balance of payments, more gold was flowing in than was flowing out.
• E)All of the above are correct.

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Definitions:

Disaffirmance

The legal right of a party to renounce or revoke a contract or agreement, particularly relevant in cases involving minors or instances of fraud.

Ratify

To formally approve or confirm an agreement or act, making it officially valid.

Ratified

Confirmed or made official by formal consent or approval, typically used in the context of constitutional amendments or treaty agreements.

Void Ab Initio

A term referring to an agreement or contract that is considered invalid from the outset, as if it never existed.