Question

Between the Civil War and World War I, the U.S. monetary system: a. experienced a persistent deflation. b. suffered several financial crises in which banks closed and firms went bankrupt. c. adopted a de facto gold standard. d. adopted a central bank. e. All of the above.

Answer 1

E). All of the above.

Step-by-step explanation:

Civil war and World War one has a crucial role not only in shaping the present America. In between of these two wars, the monetary system of United States faced drastic experiences.

As per the question, all the given options reflect the changes in the United States monetary system as it 'experienced a continuous deflation' that brought the economy to a decline. The economy 'suffered numerous financial crises' that lead to closing of banks and firms turning bankrupt. They 'adopted a de facto gold standard' with an aim to establish the price of currencies in terms of particular gold reserves. U.S. also 'adopted a central bank' to find remedies for keeping the prices stable and overcome the situation of inflation and deflation. Therefore, option E is the correct answer.