Under the Gold Standard, If a Country Imported More Than

question 139

Multiple Choice

Under the gold standard, if a country imported more than it exported:

• A) the deficit had to be covered with its inventory of gold.
• B) the deficit was balanced with a surplus in its capital account.
• C) the deficit was balanced by increasing the money supply.
• D) the trade deficit would have to be balanced with a fiscal budget surplus.

---

Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, and typically pays dividends before common stock.

Common Stock

Shares of ownership in a corporation that entitle the shareholder to vote at shareholder meetings and receive dividends.

Beta

An indicator of how much a stock's price fluctuates in comparison to the general market.

Treasury Bills

Government-issued securities sold below their nominal value, with maturity periods of no more than a year.