According to Economist Richard Gill,the Gold Standard

question 50

Multiple Choice

According to economist Richard Gill,the gold standard

• A) would never lead to a balance between imports and exports under normal conditions.
• B) was doomed to failure because there was not enough gold in the world.
• C) in effect gave the world a single common currency.
• D) may be appropriate for a single country but was too complex for use in a world of many different currencies.
• E) leads inevitably to international inflation.

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Definitions:

Currencies

Systems of money in general use in particular countries or regions, facilitating trade and economic activities.

Exchange Rate

The value of one currency for the purpose of conversion to another, which determines how much one currency is worth in terms of another.

Spot Trade

A transaction for the immediate purchase or sale of a financial instrument.

Official Exchange Rate

The official exchange rate is the rate at which a country's central bank will exchange its currency for foreign currency.