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81
Explain the Defacto Silver Standard.
Because the value of gold and silver changes over time, the market value hit 16:1 by 1834. So silver is now worth a little bit less and gold a little bit more.
Silver was the currency used by the populace because gold became more valuable on the market. So they hoarded gold and used silver. The over-valued metal at the mint will be used more in circulation. To be over-valued at the mint is to not be worth as much on the market.
Since both coins are supposed to be worth the same but the market differs, the cheaper of the two is used: silver.
Silver was the currency used by the populace because gold became more valuable on the market. So they hoarded gold and used silver. The over-valued metal at the mint will be used more in circulation. To be over-valued at the mint is to not be worth as much on the market.
Since both coins are supposed to be worth the same but the market differs, the cheaper of the two is used: silver.
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 12.10.2010