When the two countries are having the gold standard, their currency units are either made of gold specified purity and weight or freely convertible into gold of given purity at fixed rate, this theory known as
A. Purchasing power parity
B. Mint parity theory
C. Balance of payment theory
D. Stable Foreign Exchange Rate
Answer: Option B
Related Questions on International Finance and Treasury
A. The British Pound
B. The Japanese Yen
C. The Spanish Peso
D. The US Dollar
Not a profit maximizing business is
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade Organisation
A. Merchandise Payment
B. Service Payment
C. Factory Income
D. Transfer payment
Nations that have major economic expansion attract
A. Imports
B. Direct Foreign Investment
C. Exports
D. Privatization
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