Under the gold standard, exchange rates between currencies were

set by daily demand and supplyCorrect answerYour answerfixed by the amount of gold each currency could be exchanged forCorrect answerYour answerset by the IMFCorrect answerYour answerchanged by central banks every weekCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Each currency had a fixed gold value, so the rate between two currencies was the ratio of their gold values.

Concept: Gold standard
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe fixed rate: devaluation and revaluation

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Under the gold standard, exchange rates between currencies were

Explanation