ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bretton woods system of exchange rate
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Gold Standard System of exchange rate
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Flexible exchange rate system
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Managed floating system of exchange rate
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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: -Gold was considered to be the unit of parity in the gold standard system.
Detailed explanation-3: -gold standard, monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold. The currency is freely convertible at home or abroad into a fixed amount of gold per unit of currency. block of gold.
Detailed explanation-4: -In the simplest terms, the gold standard is a monetary system that ties a currency’s value directly with gold. Therefore, the currency can be exchanged for a set amount of gold and is guaranteed by the government.
Detailed explanation-5: -The gold standard was also an international standard determining the value of a country’s currency in terms of other countries’ currencies. Because adherents to the standard maintained a fixed price for gold, rates of exchange between currencies tied to gold were necessarily fixed.