Explain the three rules that countries must follow to maintain a ...

[clmills979]

Explain the three rules that countries must follow to maintain a gold standard.
 
  What will be an ideal response?

Question 2

Mercantilists perceived trade as a zero sum game.
 
  Indicate whether the statement is true or false

[otokexnaru]

Answer to Question 1

First, they must fix the value of their currency unit in terms of gold. The second rule of the gold standard is that nations keep the supply of their domestic money fixed in some constant proportion to their supply of gold. The third rule of a gold standard is that nations must stand ready and willing to provide gold in exchange for their home country currency.

Answer to Question 2

TRUE