Question

World War I caused the suspension of the gold standard for fixed international exchange rates because the war:

Answer 1

Answer:

Option B, interrupted the free movement of gold, is the right answer.

Explanation:

• A monetary system in which the standard economy unit is based on a fixed amount of gold is known as the Gold Standard.
• Throughout the Nineteenth and the Twentieth Century, many countries used this system of Gold Standard.
• With the end of 1913, the gold standard was at its zenith but the First World War caused many countries to abandon it.