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Chapter 11 (Gold Standard (Money was valued as gold which could be traded…
Chapter 11
Gold Standard
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Gold started to be used as money as early as 643 BC. They started to use the Gold Standard to make sure that the government would take back any money they had, they still would have gold. In World One happened they used gold for money because they needed more money to use towards the military. (The Balance)
Fact- During the late nineteenth century, the major nations of the world moved toward the more dependable gold coin standard; between 1873 and 1912 some forty nations used it. World War I swept all of them off it whether they were in the war or not.
Fact - Once the Great Depression hit with full force, countries once again had to abandon the gold standard (The Balance)
Fact- The outbreak of World War II ended the Depression, allowing countries to go back on a modified gold standard (The Balance)
Commodity Standard
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Money equaled gold on a fixed exchange. Now we have money that we trade for a thing that we want for the amount of money that we're paying for that object.
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Fiat Money
Fact-if the stock market were to crash then people would sell things for gold because it is a scares resource.
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