Hilary

A Quiz on Money:
Who is responsible for printing paper money and minting coins?
The US treasury. Specifically, the United States Bureau of Engraving and Printing makes paper money, while the US Mint makes coins. The two departments are completely separate.
Why were mints established?
The United States Mint primarily produces circulating coinage for the United States to conduct its trade andcommerce. It was a unified monetary system and it backed money from issuers and bank. The US Mint mainly produces coins for circulation for the purpose of trade and commerce in the Unites States.
What originally backed paper money?
The US, paper money hasn't been backed by gold since 1933.It is now backed up by public and government acceptance. At one time the price of gold was fixed by thegovernment. The number of dollars’ worth of paper money that could be printed was limited to the value of the gold on hand in the Treasury. That provided a certain level of stability to the money supply but it also meant that the supply couldn't be adjusted to stimulate the economy during bad times. When FDR took office in 1933, one of the new administration's first actions was to take the country offthe gold standard so that the Federal Reserve could inject more money into the economy. At the same time, decoupling paper money from a fixed standard also made it easier for inflation to take hold, so taking the country off the gold standard. It backed money from issuers and the banks. Under this kind of system, the money is said to be "backed by gold. Money from the banks was an example becausethere was a need for usage of other nation’s coinage. It was backed off an issue from a pay since the mints could not make coins.
What impact did the 1848 Gold rush have on the US?
Gold coins poured into the economy and merchants had booming resources as well as trade increased, banks were also prospering, and rents tripled. "The Gold Rush wealth and population increase led to significantlyimproved transportation between California and the East Coast as well as prices increased and food as well as housing tripled.
Why did silver become such an important ingredient in minting of coins?
Gold became scarce and it resulted in an abundant of silver strikes. Silver became an important ingredient because it was used instead of gold. As gold was depreciating in value silver was used as wellas the gold dust had occurred.
How was the par value or face value of paper money determined during the Civil War?
Once again the need to finance a war provided the impetus for a change in the monetary system. In 1861, to finance the Civil War, Congress authorized Demand Notes--the first issue of paper money by the government since the Continentals. Money during the civil war was worthless so itbecame an expression of natural culture and if the confederacy was going well the currency would go up and if it wasn’t the currency would go down. Coin hoarding and the need to use metals for war purposes created a shortage of coin during the Civil War and led to the circulation of small change substitutes. Between 1861 and 1865 Confederate currency was being issued to millions of Southerners,gambling that a Confederate victory would ensure the currency would be redeemable. In an effort to debase this currency, the North printed counterfeit Confederate money and circulated it in the south. Inflation was soon rampant in both the north and south, but far worse in the Confederacy. As the end of the war neared, Confederate citizens completely lost confidence in their currency and came torely on barter or black-market greenbacks. In some cases Confederate soldiers were even paid in Northern greenbacks. By the end of the war, Confederate notes were totally worthless.
Why did president candidate, William Jennings Bryan oppose the US adopting a gold standard?
In the 1896 US presidential election, Democratic candidate William Jennings Bryan was well known for supporting the silver...