Which of the Following Is Not a Condition of the International

question 165

Multiple Choice

Which of the following is not a condition of the international gold standard?

• A) A nation must be willing to accept very wide fluctuations in its exchange rate.
• B) A nation must allow gold to be freely exported and imported.
• C) A nation must be willing to convert gold into paper money and vice versa at a stipulated rate.
• D) A nation must define its monetary unit in terms of a certain quantity of gold.

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Definitions:

Financial Information

Data and facts related to the monetary performance and position of an entity, including revenues, expenses, assets, and liabilities.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets.

Balance Sheet

A report showing a firm's holdings, debts, and owner's equity on a certain date.

Corporation

A legal entity separate from its owners, with rights and responsibilities, capable of entering contracts, suing, and being sued.