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What are the benefits of being on the "gold standard"?

A. Money keeps a high value due to short supply of gold
B. People who discover gold can make their own money
OC. Money cannot be destroyed as easily
D. More businesses accept gold rather than paper money

User Valerion
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2 votes

Answer:

A

Step-by-step explanation:

A. Money keeps a high value due to the short supply of gold is a benefit of being on the gold standard. The gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. A country on the gold standard ties its currency to a fixed amount of gold. This guarantees a fixed exchange rate with other countries also on the gold standard. As gold is rare and difficult to obtain, the supply is limited, which helps maintain the value of the currency that is backed by gold.

User AHJeebon
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