The process of "demonetization of gold" involves
A. a sudden fall in private demand for gold in a country due to discovery of a minable gold deposit.
B. gold sales into the private market in recent decades by central banks and the International Monetary Fund (IMF).
C. a sudden increase in the private demand for gold in a country, forcing its central bank to sell off gold.
D. the purchase of gold and supply of money into the market by the central banks to defend the fixed gold prices.
Answer: B
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Suppose the government considers placing a tax on business profits o that businesses decrease their production and generate a deadweight loss. Revenues from the tax would be used to boost the incomes of the poor
The decision to levy the tax implies that in this case, the government A) values people but not business. B) values efficiency more than its view of fairness. C) profits from taxes. D) values its view of fairness more than efficiency.
Why don't we see firms tie-in the sales of fish filets with the sales of pencils?
A) because the demands for these two goods are positively correlated B) because the demands for these two goods are negatively correlated C) because the demands for these two goods are independent D) It violates the Clean Food Act of 1908.