Under a Gold Standard in Which One Dollar Could Be

question 59

Multiple Choice

Under a gold standard in which one dollar could be turned in to the Bank of Canada and exchanged for 1/20th of an ounce of gold and one German mark could be exchanged for 1/100th of an ounce of gold, an exchange rate of ________ marks to the dollar would stimulate a flow of gold from Canada to Germany.

• A) 7
• B) 6
• C) 5
• D) 4

---

Definitions:

Market Efficiency

A condition in which market prices fully reflect all available information, allowing for optimal allocation of resources without waste.

Non-price Factors

Elements that influence consumer decision making and market trends, such as product quality, brand loyalty, and consumer preferences, aside from the price.

Rent Control

Government-imposed limits on the amount landlords can charge for leasing property, intended to keep housing affordable.

Landlords

Owners of property who rent out space (residential, commercial, or land) to tenants, generating income from the lease agreements.