Which of the Following Is a Reason for the Emergence

question 113

Multiple Choice

Which of the following is a reason for the emergence of the gold standard?

• A)expansion in the volume of international trade due to the Industrial Revolution
• B)inability of governments to convert gold into paper currency on demand at a fixed rate
• C)widening gap between the developed and the developing nations
• D)failure of the Bretton Woods fixed exchange rate system
• E)failure of the U.S.dollar to act as a reference currency

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Preferred Shares

A class of stock that provides shareholders with a priority claim on assets and earnings before common stockholders, usually including fixed dividend payments.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond or stock as stated by the issuing company, not necessarily reflecting its market value.