The Gold Standard Is a Monetary System in Which

question 47

Multiple Choice

The gold standard is a monetary system in which:

• A)governments used gold instead of paper currencies.
• B)the exchange rate of the U.S.dollar was periodically adjusted in response to currency crises in its allies' economies.
• C)exchange rates were allowed to change according to their market price.
• D)the exchange rates of the major currencies remained fixed to gold.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally.

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, rules and procedures used in the compilation of financial statements in the U.S.

Treasury Stock Transaction

Refers to the buying back or reacquisition of previously sold shares by the issuing company, reducing the amount of outstanding stock on the open market.

Additional Paid-in Capital

The amount of money investors pay above the par value of a stock.