Question

As an investor studying the gold standard, Kyle knows that he would need 44 euros to purchase one ounce of gold. These 44 euros represent thegold reserve ratio.gold mix ratio.gold par value.gold margin.balance-of-trade equilibrium.

Answer 1

Answer:

The correct answer is the option C: Gold par value.

Explanation:

To begin with, a gold standard is a monetary system where a country's currency has a value directly linked to a fixed amount of gold that the country possesses. Secondly, in that system, if a situation where any person wants to exchange a certain amount of the currency for an amount of gold presents, that person in his right to go to the national bank who ownes the gold reserves and exchange that amount of money for a fixed amount of gold, where that last amount receives the name of ''gold par value''.