Describe the gold standard monetary system.
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Describe the gold standard monetary system. |
Answer and Explanation
Verified Answer
The gold standard is the monetary system that enables its government to issue paper currencies that could be redeemed for gold from the government's treasury. The gold standard sys...
Verified Answer
The gold standard is the monetary system that enables its government to issue paper currencies that could be redeemed for gold from the government's treasury. The gold standard system is the one which values the currency of countries based on the gold reserves they have, rather than the amount of total bilateral trade.
The value of one ounce of gold in a country is compared with the value of the gold in other countries to determine the rate of exchange of home currency.
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