Under the gold standard,_____.

A) a nation's currency was traded for gold at a fixed rate
B) a nation's central bank or monetary authority had absolute control over its money supply
C) new discoveries of gold had no effect on money supply or prices
D) prices were constant globally
E) all international transactions were financed with gold

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

Fixed Rate

An interest rate that remains constant over the duration of a loan or investment, as opposed to a variable or floating rate.

Money Supply

The entire pool of financial assets existing in an economy at a specific timeframe.