Question

Bimetallism is a monetary system based on which of the following?

• A. Based on the value of two precious metals usually gold and silver.
• B. Based on a commodity-backed currency in circulation with paper-money.
• C. based on paper currency and coin.
• D. Whereby silver was used for larger denominations while silver was used for smaller denominations.

Answer 1

The correct option is A Based on the value of two precious metals usually gold and silver.

Bimetallism is the economic term for a monetary standard in which the value of the monetary unit is defined as equivalent to certain quantities of two metals, typically gold and silver, creating a fixed rate of exchange between them.