Chap002 27 - D when gold from the California gold rush...

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3. The international monetary system went through several distinct stages of evolution. These stages are summarized, in alphabetic order, as follows: (i)- Bimetallism (ii)- Bretton Woods system (iii)- Classical gold standard (iv)- Flexible exchange rate regime (v)- Interwar period The chronological order that they actually occurred is: A. (iii), (i), (iv), (ii), and (v) B. (i), (iii), (v), (ii), and (iv) C. (vi), (i), (iii), (ii), and (v) D. (v), (ii), (i), (iii), and (iv) Topic: Evolution of the International Monetary System 4. In the United States, bimetallism was adopted by the Coinage Act of 1792 and remained a legal standard until 1873, A. when Congress dropped the silver dollar from the list of coins to be minted. B. when Congress dropped the twenty-dollar gold piece from the list of coins to be minted. C. when gold from the California gold rush drove silver out of circulation.
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Unformatted text preview: D. when gold from the California gold rush drove gold out of circulation. Topic: Bimetallism: Before 1875 Topic: Evolution of the International Monetary System 5. The monetary system of bimetallism is unstable. Due to the fluctuation of the commercial value of the metals, A. the metal with a commercial value lower than the currency value tends to be used as metal and is withdrawn from circulation as money (Gresham's Law). B. the metal with a commercial value higher than the currency value tends to be used as money (Gresham's Law). C. the metal with a commercial value higher than the currency value tends to be used as metal and is withdrawn from circulation as money (Gresham's Law). D. none of the above Topic: Bimetallism: Before 1875 Topic: Evolution of the International Monetary System...
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This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.

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