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In the 1850s the French Franc Was Valued by Both

Question 13

Multiple Choice

In the 1850s the French franc was valued by both gold and silver, under the official French ratio which equated a gold franc to a silver franc 15½ times as heavy. At the same time, the gold from newly discovered mines in California poured into the market, depressing the value of gold. As a result,


A) the franc effectively became a silver currency.
B) the franc effectively became a gold currency.
C) silver became overvalued under the French official ratio.
D) answers a and c are correct

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