When the United States was on the gold standard, banks were required to: A. only accept gold as collateral for large business loans. B. exchange U.S. dollars for a specific amount of gold. C. provide a certain amount of gold to the government each year. D. use gold when conducting business with foreign clients.

During the time the United States was on the gold standard, banks were indeed obligated to exchange U.S. dollars for a specific amount of gold. This meant that every dollar printed was backed by a certain quantity of gold, ensuring a level of trust and stability in the currency. The system aimed to curb inflation and restrain excessive borrowing, but it also tied the economy to the amount of gold reserves available, which could limit growth. The gold standard had a significant impact on international trade and finance. Countries participating in the standard could more readily exchange currencies without worrying about fluctuating values, fostering a more stable global economy. However, this system came with challenges, especially during economic downturns, as it restricted the flexibility of monetary policy and contributed to the Great Depression's severity when nations struggled to maintain their gold reserves.