Under the Gold Standard

question 7

Multiple Choice

Under the Gold Standard,

• A)exchange rates could float.
• B)real interest rates were fixed.
• C)real exchange rates were fixed.
• D)nominal interest rates were fixed.
• E) none of the above

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Definitions:

Assignment

The transfer of rights, property, or responsibilities from one party to another, either permanently or temporarily.

Contractual Liability

The responsibility and obligations that a party is subject to under the terms of a contract.

Without Recourse

A phrase indicating that the holder of a financial instrument cannot demand payment from the originator if the instrument fails to pay.

Indorser

A person or entity that signs the back of a negotiable instrument, thereby transferring ownership or guaranteeing payment to another party.