The system of tying the value of the U.S. dollar to the amount of gold held in U.S. reserves was known as the:A.fiat money system.B.gold standard.C.Bretton Woods system.D.standard of living.

For much of U.S. history, citizens could exchange paper dollars for a certain amount of gold. This made paper money in the United States an example of:A.commodity money.B.fiat money.C.inflated money.D.representative money.

What is the advantage of the gold standard as a monetary policy?

Fiat money is moneyGroup of answer choicesbacked by gold or silver.that can be converted to gold or silver.because a government says it is.backed by land.

1. The government agency that oversees the banking system and is responsible for theconduct of monetary policy in the United States isA) the Federal Reserve System.B) the United States Treasury.C) the U.S. Gold Commission.D) the House of Representatives.2. Individuals that lend funds to a bank by opening a checking account are calledA) policyholders.B) partners.C) depositors.D) debt holders.3. Total reserves are the sum of ________ and ________.A) excess reserves; borrowed reservesB) required reserves; currency in circulationC) vault cash; excess reservesD) excess reserves; required reserves4. Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%,and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causesthe M1 money multiplier to ________, everything else held constant.A) increase from 0.73 to 0.78B) decrease from 0.73 to 0.61C) increase from 1.54 to 1.67D) decrease from 1.67 to 1.545. Suppose that from a new checkable deposit, First National Bank holds two million dollarsin vault cash, one million dollars in required reserves, and faces a required reserve ratio of tenpercent. Given this information, we can say First National Bank has ________ million dollarsin excess reserves.A) oneB) twoC) nineD) ten6. If the required reserve ratio is one-third, currency in circulation is $300 billion, checkabledeposits are $900 billion, and there is no excess reserve, then the M1 money multiplier isA) 2.5.B) 2.8.C) 2.0.D) 0.67.7. The interest rate the Fed charges banks borrowing from the Fed is theA) federal funds rate.B) Treasury bill rate.C) discount rate.D) prime rate.8. The monetary base minus currency in circulation equalsA) reserves.B) the borrowed base.C) the nonborrowed base.D) discount loans.

What is the main argument by economists for support of the gold system?Multiple choice question.The gold standard offers governments more flexibility in making adjustments to the money supply to ward off a recession. The gold standard allows for reserve funds to be held by a central bank and regulated so that it is fair and accurate for all nations.Under the gold standard, a government cannot create money that is not backed by gold no matter how great the temptation to do so for political advantage.The gold standard does not interfere with a nation's ability to trade as it sees fit and does not attempt to correct any trade imbalance.