Question

A country that is on the gold standard has a currency that:

A. takes the form of gold coins rather than paper bills.

B. replaces gold as the country's reserve currency.

C. has an exchange rate based on the price of gold.

D. can be traded for a set amount of gold at any time.

Answer 1

Answer:

B

replaces gold as the country's reserve currency.

Answer 2

Answer:

D. can be traded for a set amount of gold at any time.

Explanation:

A country that is on the gold standard has gold set to a specific price. This allows it to serve as a scale for the value of the currency in a country. Since it has a set value, it can be traded for at any point for that amount.