The Primary Disadvantage of the Gold Standard Was That It

question 11

True/False

The primary disadvantage of the gold standard was that it increased exchange-rate risk.

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Definitions:

Market Value

The market price at which an asset or service can be transacted currently.

Shares Outstanding

The total number of shares of a corporation that have been authorized, issued, and purchased by investors and are held by them.

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.

Capital Spending

Expenditures by a business for acquiring or upgrading physical assets such as property, industrial buildings, or equipment.