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Brrunno [24]
1 year ago
12

the rules of the game. under the gold standard, all national governments promised to follow the "rules of the game." what did th

is mean?
Social Studies
1 answer:
wariber [46]1 year ago
6 0

All national governments agreed to abide by the "rules of the game" under the gold standard. The defense of a fixed exchange rate was required.

A monetary system known as the "gold standard" links a currency's value directly to gold. As a result, the money is guaranteed by the government and can be exchanged for a specific amount of gold. A fixed exchange rate helps to ensure the smooth flow of money from one country to another.

Gold standard means, The amount of gold that a nation's central bank or treasury kept constituted the upper limit on its money supply. Any change in its gold holdings had to be accompanied by an equal adjustment in the number of outstanding local currency units.

According to the "rules of the game," nations that lost gold were required to raise interest rates and reduce their money supply, while nations that gained gold were required to lower interest rates.

To learn more about gold standard here

brainly.com/question/9222673

#SPJ4

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