From 1858 until 1913, Canada pegged its currency to gold at the rate of 20.67 CAD per troy ounce of gold. When WWI started, Canada went off the gold standard. Why?

1. It lacked the gold reserves to satisfy increasing demands for redeemability.
2. The gold standard limited the governments ability to pay for war.
3. The gold standards associated capital requirements and reserve requirements impeded the country from contributing to the war effort.
4. All of the above.

46. How is most currency in Canada created?

1. Through open market operations.
2. Through commercial paper trading.
3. Through the government digitally increasing bank reserves.
4. Through private bank lending.

47. Under which of the following conditions is barter more effective than a monetary system of exchange?

1. In a low-trust society.
2. In a hyperinflationary setting.
3. When a country is rich in natural resources.
4. When there is a strong state.