Question

Under the 'Gold Standard' Financial System from 1873-1914, which of the below were used as Reserve Assets?

a.

Gold and Silver

b.

Gold and Pound

c.

Gold and Dollar

d.

Dollar, Mark and Pound

Posted under IC 89 Management Accounting

Answer: (c).Gold and Dollar Explanation:During the 'Gold Standard' Financial System from 1873-1914, gold and certain major currencies, particularly the British Pound and later the U.S. Dollar, were used as reserve assets. Countries adhering to the gold standard agreed to fix the value of their currencies in terms of a specific quantity of gold. The central banks held gold reserves and sometimes other major currencies to support their monetary systems. The U.S. Dollar, backed by gold, gained prominence as a key reserve currency during this period. The gold standard aimed to provide stability to international trade and financial transactions by linking currency values to a fixed quantity of gold.

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Q. Under the 'Gold Standard' Financial System from 1873-1914, which of the below were used as Reserve Assets?
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