What Was One of the Major Reasons the Gold Standard

question 46

Multiple Choice

What was one of the major reasons the gold standard fell apart?

• A) Countries fighting in World War I printed excessive amounts of money to finance their war efforts.
• B) Military campaigns during World War I stole much of the gold from foreign central banks.
• C) Gold lost its value and was no longer reliable.
• D) Gold became too rare and costly to maintain adequate reserves.

---

Definitions:

FIFO

An inventory valuation method (First In, First Out) where the oldest inventory items are recorded as sold first.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in inventory valuation and grading.

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lower of its historical cost or market value, to comply with the conservatism principle.

Inventory Valuation

The method of assigning a monetary value to items in inventory, critical for cost of goods sold calculation and financial reporting.