Industrial Capitalism · World History

How did the 'Gold Standard' facilitate international industrial capitalism?

  1. It required all factory machines to be made of gold
  2. It provided a stable, fixed exchange rate between different national currencies
  3. It gave the gold-producing colonies total control over European banks
  4. It banned the use of paper money in international trade
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Correct answer: It provided a stable, fixed exchange rate between different national currencies

By linking currencies to a set amount of gold, nations made international trade and investment more predictable. This stability was crucial for the long-term capital investments required by global industrial projects like railways.

Difficulty: Medium Question 6 of 10

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