Which economic doctrine advocates stockpiling gold and silver in the state's treasury?

• A. Capitalism
• B. Mercantilism
• C. Socialism
• D. Feudalism

Answer: (B)

Stockpiling gold and silver in the state's treasury reflects a view of national wealth measured by treasure itself. Mercantilism holds that a country becomes powerful by amassing precious metals, so policies aim to increase the treasure through a favorable balance of trade, export promotion, and restrictions on imports. Keeping bullion in the treasury is seen as both a sign and a means of economic strength, funding government needs and military power. In contrast, capitalism centers on private property and voluntary exchange, socialism on shared or state ownership of production, and feudalism on land-based obligations—none of which prioritize hoarding the state's precious metals. So mercantilism best explains the idea of stockpiling gold and silver in the treasury.