Statement I: We are currently on the gold standard.
Statement II: Our current account deficit is about 3% of our GDP.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Gold Standard

A historical system of fixed exchange rates in which nations defined their currency in terms of gold, maintained a fixed relationship between their stock of gold and their money supplies, and allowed gold to be freely exported and imported.

Current Account

The section of a nation’s international balance of payments that records its exports and imports of goods and services, its net investment income, and its net transfers.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific period.