Question

why was metallic standard ran into problems?​

Answer 1

Under metallic standard, the monetary unit is determined in terms of some metal like gold, silver, etc. Standard coins are made out of the metal. Standard coins are full-bodied legal tender and their value is equal to their intrinsic metallic worth. The important thing to note is that to be on a metallic standard a country must keep – (a) its monetary unit at a constant value in terms of the selected metal, and (b) its various types of money convertible into the selected metal at constant values.

Answer 2

Explanation:

Notable Happenings. In 1913, Congress created the Federal Reserve to stabilize gold and currency values in the U.S. When World War I broke out, the U.S. and European countries suspended the gold standard so they could print enough money to pay for their military involvement.