Are the statements below true or false? (0.5 mark for each) Explain the reasons for your answers. (2 marks for each)

Suppose that the United States is on a bimetallic standard at $35 to one ounce of gold and $3 for one ounce of silver. If new silver mines open and flood the market with silver, the two metals will circulate as before in the US since citizens could exchange their gold currency for silver currency at any time.