Question

Question 27

1. Which statement is TRUE regarding the gold standard?

   	a.	Very few countries participated in the gold standard prior to the Great Depression
   	b.	The gold standard allowed for flexible exchange rates similar to what we have today
   	c.	Countries with large trade surpluses would accumulate more gold stocks.
   	d.	Gold was fairly evenly distributed across many countries during the 1930s.

3.33 points

Question 28

1. Which of these is a potential cost of adopting another country's currency as its official medium of exchange ?

   	a.	elimination of exchange rate risk between the two countries
   	b.	elimination of foreign exchange transactions when countries trade with each other
   	c.	elimination of the risk of being unable to maintain a fixed exchange rate with its original currency
   	d.	elimination of a country's independent monetary policy

Answer 1

27. Answer :

Very few countries participated in the gold standard prior to the Great Depression

A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was widely used in the 19th and early part of the 20th century.

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33.

Answer :

elimination of a country's independent monetary policy.

While the others are benefits