The advantages claimed for a bimetallic standard were not gained in actual practice because
A) one of the metals disappeared from circulation because the mint and market ratios were not the same
B) the supply of gold was inadequate
C) the supply of silver and gold was not balanced among the nations that were on a bimetallic standard
D) The U.S. went to war

Question

Quizplus · Accepted Answer

The bimetallic standard was based on the fixed ratio of silver to gold. However, the market ratio fluctuated, causing one of the metals to be overvalued or undervalued. This led to hoarding and melting of the undervalued metal, which disappeared from circulation. As a result, the desired advantages of a bimetallic standard were not achieved.

The Advantages Claimed for a Bimetallic Standard Were Not Gained