The Gold Standard Flashcards
What is the Gold Standard?
A system of financial control where the value of money is tied to gold
What did the existence of the gold standard mean for people who gave loans to others?
They would be more likely to get their money back
What did the existence of the gold standard mean for people who took out lots of loans getting in debt? Why?
They would struggle to pay off the debt as there was limited money
Why was The Gold Standard designed?
To stop continuous Deflation or Inflation
Which group of people in USA Society were more likely to be in immense debt?
Farmers
What did many people want in addition to the Gold Standard? Why?
Silver coinage, so inflation would occur and they could pay off debts easier
Name the types of currency that would have been in place if the Free Silver Movement was accepted
Paper Notes, Gold, Silver coins
Name 2 groups of people in the USA who encouraged silver coins
Miners, Farmers
When was the Gold Standard Implemented?
1879
Name 2 groups of people that would have disliked the addition of silver coinage
Big business owners
Why did the big business owners and banks dislike the idea of silver coins?
Because they would make less profit
What did the Federal Government have to decide when implementing silver coinage or not?
If they wanted to help the rich or the poor
What decision did The Federal Government make with silver coinage and who decided this?
William McKinley decided not to implement it when he became President
