How Well Do You Know The Gold Standard?
Every few years, someone gets the brilliant idea that we should return to the gold standard. Test your knowledge of the ever-relevant issue.
True or False: The first minted coins were gold.
Coins from 7th-century BCE Lydia were of electrum, a gold-silver alloy.
True
False
Which is NOT TRUE of the gold standard:
Large gold discoveries (e.g., California circa 1850) cause short-term price instability in currencies tied to gold standard
It anchors a currency to the price of gold
It fixes exchange rates between participating countries
It is not affected by surges of gold on the market
Its most cited advantage is long-term price stability
When did England officially switch from a silver to a gold standard?
Although made official in 1819, the process really started in 1717 when then master of the mint and gravity guy Sir Isaac Newton initiated the transition.
1450
1660
1819
True or False: The gold standard requires increased interest rates when gold is scarce.
The effect on interest rates is one of the model's most oft-cited disadvantages.
True
False
When did America formally drop the gold standard?
When, President Nixon ended the dollar's convertibility to gold in 1971, it was intended as a temporary measure, but was adopted as permanent in 1976.
1919
1939
1976
Many Republicans advocate a return to the gold standard as it gives:
Limiting the power of the central bank (i.e., the Federal Reserve System, or 'The Fed') is the crux of the argument favored by many GOP members.
More power to the central bank
Less power to the central bank
Fiat money--the gold standard's opposite--was invented where?
As far back as the 11th century BCE, fiat money (i.e., paper money not convertible to some other commodity) was in circulation in China.
China
France
England
America
Who has NOT advocated a return to the gold standard?
Unlikely GOP and ISIS overlap: they are both fans of the gold standard. ISIS propaganda claims the golden dinar will bring America "to her knees."
Ted Cruz
Ron Paul
ISIS
Bernie Sanders
You got {number correct}/{number of questions} correct answers
This was not your finest hour. We're going to resist the urge to make a fool's gold joke and suggest you brush up on your gold standard history!
You got {number correct}/{number of questions} correct answers
Brilliant! Your knowledge of the gold standard is way above average.
You got {number correct}/{number of questions} correct answers
Pure gold! When it comes to the gold standard, you know your stuff.