Question

In the late 1800s, why did industrialists support the gold standard?
The gold standard kept the price of gold flexible, which made the value of currency go up and down.
The gold standard kept the price of gold fixed, which kept both prices and wages down.
The gold standard kept the price of gold fixed, which caused wages to steadily increase.
The gold standard kept the price of gold flexible, which also made the price of silver flexible.

Answer 1

The correct answer is Option B) The gold standard kept the price of gold fixed, which kept both prices and wages down.

In the early years of the Industrial revolution, the world was changing at a fast pace. New jobs were being created, goods were being traded at a rapid pace and demand was growing all over the world.

In such a circumstance, Industrialists did not like to support the 'fiat' standard where currencies fluctuating daily determined market prices for their goods.

This was incompetitive especially in Global trade.

With the Gold Standard, prices were fixed, which not only helped to keep wages down, but also helped them to plan their goods better and grow their business.

Answer 2

Answer:

B ) The gold standard kept the price of gold fixed, which kept both prices and wages down.

Explanation:

On the Edge

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