One Potential Drawback of the Gold Standard Is That

question 79

Multiple Choice

One potential drawback of the gold standard is that

• A)the world economy can be subject to deflationary pressure due to the limited supply of monetary gold.
• B)the world economy can be subject to inflationary pressure without changes in the supply of monetary gold.
• C)gold is scarce.
• D)all of the options

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Definitions:

Accounting Period

A specific time span for which financial statements are prepared, commonly a quarter or a year.

Dividends Account

An account used in bookkeeping to track dividends declared by a company to be paid out to its shareholders.

Retained Earnings

The portion of net profits not distributed as dividends to shareholders but retained by the company for reinvestment or to pay off debt.

Sole Shareholder

An individual or entity that is the only owner of all the shares of a company, thus having complete control over its operations.