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Which of the following is a definition of the gold standard?

• indicator of the highest credit rating
• variable currency based on the price of gold
• weight of gold bullion
• purity of bold bullion
• currency based on the price of gold

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User Tarellel
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2 Answers

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E. Currency based on the price of gold.

The gold standard refers to a monetary system in which a country's currency is directly tied to the value of gold. Under the gold standard, the currency's value is fixed in terms of a specific amount of gold, and individuals can exchange their currency for its equivalent value in gold. This system ensures that the currency has intrinsic value and is backed by a tangible asset (gold).

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User Dustinfarris
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Gold standard is the variable of currency based on the price of gold. The value of the currency was defined in terms of gold and the currency could be exchange. This standard has been abandoned last 1930s during the Depression. 
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User Snrlx
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