Under mercantilist policy, what is the treatment of exports of gold and silver?

• A. Exports of gold and silver encouraged
• B. No stance on gold and silver
• C. Gold and silver allowed to be traded freely
• D. All exports of gold and silver prohibited

Answer: (D)

Under mercantilist thinking, a nation’s wealth is measured by its stock of precious metals like gold and silver, and the goal is to keep that wealth inside the realm while maintaining a trade surplus. Because bullion represents real wealth and currency power, the state restricts its outflow to prevent wealth from leaving the country. That’s why the treatment is to prohibit all exports of gold and silver. If bullion could freely leave, domestic wealth would shrink, undermining government spending, currency stability, and the ability to finance campaigns or infrastructure—central aims of mercantilist policy. Other approaches—encouraging exports, having no stance, or allowing free trade—would conflict with the idea of retaining precious metals to strengthen national power.