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Question
Which of the following is a great strength of the gold standard?
A. It helped establish the dollar as a predominant vehicle currency.
B. It helped governments raise foreign exchange reserves thereby increasing economic stability.
C. It contained a powerful mechanism for achieving balance-of-trade equilibrium by all countries.
D. It helped reduce inflation to near-zero levels in all countries engaged in international trade.
E. It helped to establish a common currency across the globe to fund international trade.
Answer
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