Under a Gold Standard

question 19

Multiple Choice

Under a gold standard

• A) there cannot be a balance of payments deficit.
• B) there cannot be a balance of payments surplus.
• C) balance of payments imbalances should be quickly corrected by gold flows.
• D) countries must sterilize all gold transactions.

---

Definitions:

Prestige

The level of respect, admiration, or esteem that a person, organization, or entity is regarded with, often based on perceived success, achievement, or quality.

Superiority

The state or quality of being superior or better than others, often in skills, performance, or status.

Internal Locus

The belief that one controls their own destiny and outcomes are the result of personal effort and actions.

Control Orientation

An approach or mindset focused on managing or directing the behavior and activities of individuals or groups, often to ensure conformity and achieve specific outcomes.