C) This is the equivalent of the exported collected works by economists from the country

2. Gold performs the function of money in the system of the gold standard. What other main provisions

of this system do you know?

A) The national exchange rates were tied to gold. There was a great deviation from the fixed rate

(±30 %).

B) The national exchange rates were tied to gold. But each nation established a maximum deviation

Individually. It mainly depended on the will of the monarch, since the monarchist

Form of government was in the majority of countries of Western Europe.

C) The national exchange rates were fixed hard to gold within this system. There was a minimum

deviation from the fixed rate (±1 %).

3. What can be referred to the advantages of the gold standard system?

A) This standard provided the internal stability of the national monetary system, but the trade

Relations were restrained by the foreign economic policy.

B) The stability in both internal and foreign economic policies was provided. On the one hand,

It stimulated international trade and, on the other, the stability of the exchange rates allowed

To plan expenses and profits.

C) The exchange rates stability was provided, at the same time flows of money (cash flows) of

The companies promoted the allocation of capital only for the gold-mining industry.

4. What disadvantages do you see in the gold standard system?