ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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mercantilism
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gold standard
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econometrics
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factor endowment theory
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Detailed explanation-1: -The Gold Standard was a system under which nearly all countries fixed the value of their currencies in terms of a specified amount of gold, or linked their currency to that of a country which did so.
Detailed explanation-2: -The gold standard is a monetary system where a country’s currency or paper money has a value directly linked to gold. With the gold standard, countries agreed to convert paper money into a fixed amount of gold. A country that uses the gold standard sets a fixed price for gold and buys and sells gold at that price.
Detailed explanation-3: -Click on a tile for details. As of 2022, none of the world’s countries use the gold standard. However, several countries used it in the past.
Detailed explanation-4: -Core countries: Britain, United States, France, Germany. Western Europe: Belgium, Italy, Netherlands, Switzerland. Other countries: Canada, Japan, Sweden. Metallic money, minor coin, paper currency, and demand deposits.
Detailed explanation-5: -In 1821, England became the first country to officially adopt a gold standard.