Foreign Exchange Markets Summary

Running Head : FOREIGN EXCHANGE MARKETS SUMMARY[Author s Name][Institution s Name] aureate criterion was in the monetary system of many countries for many years . Gold standard can be defined as the rule of exchange of notes . These notes are easily exchangeable with the started make out of atomic number 79 . It has always been the purpose of a government to declare a policy which could provide money creation improvement and can be employ in the time of emergenciesGold standard overtook the gold coin system from 17th to 19th coulomb We can define Gold standard as a pledge put forward by participating countries to fix the prices of their domestic currencies in stipulations of the gold . This means that if a agricultural sets the price of an ounce of gold to virtu alto specifyhery 100 , consequently the price of 1 dollar will be around 1 /100th of that goldGold standard is not a accredited standard of country now .

In fact all of the countries have changed their standard to flat currency standard where the protect of the money is not dependent upon the goldGold standard had many drawbacks in its implementation . It is fact that if US had continued its policies under gold standard it would have really cost them the capability to congeal its economic policies . It is also fact that the Great Depression lengthen so long because of at that time the gold was used as monetary standard . Countries which switched to other standards...If you want to get a full essay, order it on our website: Orderessay

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