Which of the Following Is a Reason Why Nations Began

question 41

Multiple Choice

Which of the following is a reason why nations began abandoning the gold standard in the 1930s?

• A) World supply of gold dropped drastically in the 1930s, severely limiting a country's ability to increase its money supply.
• B) Imbalances in a country's balance of payments can be corrected only through changes in the entire economy.
• C) In order to correct imbalances in its balance of payments, a country was forced on its trading partners to intervene in currency markets.
• D) Some nations started hoarding gold in order to manipulate relative exchange rates.

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Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.

Cash Paid

The total amount of cash disbursed by a company for various purposes, including operating expenses, investing activities, and financing activities.

Suppliers

Entities that provide goods or services to another organization, typically part of the supply chain or production process of a company's products.

Indirect Method

A technique for preparing the cash flow statement in which net income is adjusted for non-cash transactions and changes in working capital to reflect cash flow from operating activities.