464 Take Home Quiz Due Tuesday January 22

464 Take Home Quiz Due Tuesday January 22 - Naila Prieto...

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Naila Prieto 464 Take Home Quiz 1/22/09 1) What advantages and disadvantages does a bimetallic currency offer? Why did the US never have a fully operating bimetallic currency? Why did Milton Friedman believe that the US and the world would have been better off if the “Crime of ‘73” had not been committed? Why did the issue of a bimetallic currency fade after 1896? The advantages of a bimetallic currency are that unlike the gold standard, hand to hand transactions because gold was valuable for everyday transactions. However, when using bimetallic currency, the opportunity to create counterfeit coins exists. And that is what happened, when silver coins of lesser value were supplemented in transactions. What bimetallic counterfeiters did was use metals of a lower value than their legal tender and they got away with it because it was difficult to detect counterfeiting. The U.S. never had a fully operating bimetallic currency because it was not technically feasible until the invention of the seam-powered presses that produced coins
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464 Take Home Quiz Due Tuesday January 22 - Naila Prieto...

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