Ch 6

1. Which famous coin was known as the original dollar?

Taler

2. Which of the following terms explains why commodity money is taken out of circulation
because the value of the metal becomes worth more than face value of the coin?

The Gresham effect

3. China was the earliest society to use paper currency - what was the major societal factor
which supported this usage?

A strong centrally controlled government power

4. The two most critical factors seen as driving the creation and use of paper money in 1439
Europe were?

The mechanical printing press and the Black Death

5. The Mississippi Bubble of 1719 France provided an important lesson in monetary history.
Which of the following best describes this:

The dangers of monetary and stock price inflation and collapse

6. Which famous American is considered both one of its "founding fathers" and also the originator
of US paper money?

Benjamin Franklin

7. One of the reasons for the US Confederate South failure to win the US civil war was the
collapse of its paper money system. This money system was backed by what important
commodity.

Cotton

8. The majority of early Chinese coins were made from which of the following two metals?

Brass and copper