[Donnie Brasco]

6: During the 1870-1920 period the industrialized nations set up _______, with one of the last being the Federal Reserve in 1913.
credit unions

gold reserves

central banking systems

private banking systems


7: When used as part of a commodity money system, which of the following is not a function of paper currency?
to reduce the danger of transporting gold

to reduce the possibility of debasement of coins

to avoid the reduction in circulating medium to hoarding and losses

to avoid the decrease in value of precious stones


8: The gold standard, in theory, limits the power of governments to cause _______ by excessive issue of paper currency.
price inflation

unemployment

wealth and poverty
stagflation


9: The Mundell-Fleming Model describes the behavior of ______ under a gold standard.
the economy

stocks and bonds
currencies

all of the above


10: Approximately ____ of all above-ground gold is held in reserves by central banks.
10%

25%

50%

85%