Which of the Following Was a Disadvantage of Using Gold

question 19

Multiple Choice

Which of the following was a disadvantage of using gold as a medium of exchange in international trade?

• A)The weight of gold made transporting it expensive.
• B)Gold was not in high demand.
• C)The gold standard imposed lenient monetary policies on countries that participated in the system.
• D)The gold standard increased the risk in exchange rates as it maintained highly flexible exchange rates between currencies.

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Definitions:

Fixed

Refers to something that is unchanging and stable, often used in the context of expenses or assets that do not vary with production volume.

Variable

An element, feature, or factor that is likely to vary or change; in scientific experiments, this is the factor being tested or measured.

Product Cost

Product cost refers to the total expenditure incurred to create a product, including direct materials, direct labor, and manufacturing overhead.

Period Cost

Expenses on a company's income statement that are not directly tied to the production of goods or services and are expensed in the period they are incurred.