The Gold Standard

Lisa Kuehn, Phillip Washburn, Breanna Sibley

The Gold Standard

When a basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold.

The Gold Standard act of 1900

This act made the dollar worth 1/20.67 of an ounce of gold. People could exchange greenbacks, gold certificates, silver certificates, and national bank notes for gold at the Treasury.

Advantages

  • People feel more secure about their currency.
  • It keeps paper currency scarce, because gold is a limited resource.

Disadvantages

  • Gold is a limited resource, therefore economic growth may slow.
  • If a large number of people decide to convert their currency at the same time, it may drain the gold reserves.

DEATH OF THE GOLD STANDARD

Both foreign