Which of the following was a reason that led to the collapse of the go

QUESTION

Which of the following was a reason that led to the collapse of the gold standard in 1939?

A. Difficulty and complexity in using the gold standard to determine the exchange rate

B. Agreement by governments to convert paper currency into gold on demand at a fixed rate

C. A cycle of competitive currency devaluations by various countries

D. Expansion in the volume of international trade in the wake of the Industrial Revolution

E. The inability of the gold standard to act as a mechanism for achieving balance-of-trade equilibrium by all countries

ANSWER

C