Under a Gold Exchange Standard

question 40

Multiple Choice

Under a gold exchange standard

• A) all currencies are directly convertible into gold at fixed rates.
• B) the monetary price of gold is allowed to fluctuate freely in response to supply and demand.
• C) balance-of-payments surpluses and deficits will not occur.
• D) gold is directly convertible into special drawing rights called paper gold.
• E) the dollar is convertible into gold at a fixed price, and thus other currencies via fixed exchange rates are indirectly convertible into gold.

---

Definitions:

Monthly Statements

A financial report issued by a company or institution to a user or account holder, detailing the transactions and balances for a month.

Card-Skimming Device

A device illegally installed on card readers to intercept and steal card information.

Magnetic Strips

Strips of magnetic material often used on credit cards and identification cards to store data digitally for swipe access or transactions.

Homeowners' Insurance

A form of property insurance that covers losses and damages to an individual's house and assets in the home.