How Does the Gold Standard Work?
The US dollar was tied to gold at 20.67 dollars per ounce until the spring of 1933 (Federal Reserve History).
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1.What does parity mean here?
The US dollar was tied to gold at 20.67 dollars per ounce until the spring of 1933 (Federal Reserve History).
2.In Goldia 1 ounce is 20 units. A 4 unit loaf is how many ounces?
4 divided by 20 gives 0.2; if prices sank 25 percent the loaf would cost 3 units, or 0.15 ounces: a price is just gold in disguise.
3.A 1,000 ounce vault with full backing supports how many units of notes?
At half backing the same vault supports 40,000 units; gold sets the ceiling for money.
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