Gold Standard Flashcard

Front

What monetary system did the nation shift to in 1900?

Back

Gold standard

Front

What is the main characteristic of the gold standard?

Back

Currency is backed by gold

Front

What was one advantage of the gold standard?

Back

It set a definite value on the dollar.

Front

What was another advantage of the gold standard?

Back

The government could only issue currency if it had gold in its treasury

Front

What did the gold standard ensure about paper money and coins?

Back

They were equal to the value of a certain amount of gold.

Front

When did the United States adopt the gold standard?

Back

1900

Front

What is one advantage of the gold standard mentioned in the text?

Back

It prevents the government from creating too much money.

Front

What does the gold standard allow people to do with federal currencies?

Back

Exchange them for gold.

Front

According to the text, how does the gold standard affect people's feelings about currency?

Back

It makes them feel secure.

Front

What is a disadvantage of the gold standard?

Back

It can deplete the gold supply if people convert currency.