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The issuance of currency was tied to the U.S. gold holdings prior to 1968. The value of the currency is based on its purchasing power in the economy and around the world; and has not been linked to any particular commodity or an index since 1968.
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∙ 13y ago
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US monetary system went off this standard during the Depression?
Gold
Under what monetary standard does the US currently operate?
I'm not fully understanding what this answer means, but I don't think it portends well. US currency is not based on Gold or something tangible like that; it is based on debt. US currency is a debt-based system.
What are 2 terms that refer to the economic system in the US?
The United States currently has a "Fractional Monetary Reserve System" although the system was originally a "Specie-backed" system (each dollar backed by a quantified amount of gold, "The Gold Standard").
What was the difference between the gold bugs and the silverites?
Gold bugs were advocates for a gold standard, favoring a monetary system where currency was backed by gold. Silverites, on the other hand, supported bimetallism, which would allow both gold and silver to be used as currency. The debate over these two monetary systems was prominent in the late 19th century in the United States.
Did the US ever adopt the Spanish dollar as a the basic monetary system?
The US never adopted the Spanish dollar as a monetary system. However, in the early years of the Republic the use of foriegn currency, including the Spanish Dollar, was common and accepted.
Who designed the us monetary system?
It was designed in 1944 by 730 delegates from 44 allied nations and was called the Brenton Woods System.
Is it legal to develop a new monetary system in the US?
No. Never for a "private" non-government monetary system, but, yes, it would have to be introduced as a Bill into Congress, and the entire lawmaking process would have to take place in order to pass it.
How would you use bimeattlism in a sentence?
Bimetallism was a monetary system that died in the late 19th century in the US.
Which policy is the responbiliy of the federal reserve system to contribute to the strength and vitality of the US economy?
monetary policy
Which regulatory agency oversees the US' monetary system and credit supply?
the answer to studyisland is Federal Reserve Board
What was the annuity system involving the US government and Indian tribes?
system under which the federal government gave annual monetary grants to Indians
Why would it be good to go back to the gold standard?
The gold standard is a monetary system in which the value of currency is determined by its relative exchange for a widely available and valuable commodity (traditionally gold). The concept was designed to limit the printing or issuance of currency without regard to the collateral (the amount of gold any government or country had). This is no longer used by any government, legal tender having become backed by the "full credit and faith" of the issuer, based on the goods and services produced that provide revenue. In the US, the gold standard was used from 1882 - 1933 and was preceded by first "gold notes" in 1865. Going back to the gold system would have some benefits in reducing public debt and deficits, but would be nearly impossible given the amount of unsecured debt in the US and worldwide.
