What Is Money
This is what gives money its value more than the material it’s made of.
Trust
Cowrie shells and livestock are examples of this type of early money.
Commodity Money
World War I was expensive because it required this type of warfare.
Industrial / total war
Inflation causes prices to rise and money to do this.
Lose value
This country experienced extreme inflation after WWI.
Germany
This system of trade existed before money and required both sides to want what the other had.
Barter System
These replaced barter because they were easier to standardize and divide.
Coins
Governments raised money during WWI by taxing, borrowing, and doing this.
Printing Money
Civilians experienced inflation first through rising costs of these.
Food, rent, fuel
Inflation can cause this type of instability after war.
Political and social instability
This is one problem money solves that barter could not.
Having to find someone who wants exactly what you have
This civilization was the first to widely use paper money.
China
These were sold to civilians as a patriotic way to fund the war.
War Bonds
Why didn’t wages keep up with inflation during WWI?
Governments controlled wages while prices rose
Why is money considered a “weapon” during war?
It funds armies and controls economic survival
This happens when people lose faith in a currency’s value.
Economic instability / inflation / collapse of money
This system tied a country’s currency to gold reserves.
Gold Standard
This financial system limited money printing before WWI but collapsed during it.
Gold Standard
This term describes civilians supporting and suffering economically during war.
The Homefront
How did WWI show that civilians are affected even if they don’t fight?
Through inflation, shortages, and economic hardship
Explain why money can still work even if it has no intrinsic value.
Because people trust the government and believe others will accept it
Why did paper money increase both efficiency and economic risk?
It was easier to print and use, but could lose value if overproduced
Why did World War I permanently change how governments use money?
Because war costs forced governments to abandon limits and control economies
how inflation transferred the cost of war from governments to civilians.
Higher prices reduced purchasing power while governments avoided raising taxes
WWI could have been fought without inflation?
no, because governments needed rapid funding beyond taxes