Question

1. The gold standard is an example of what type of international monetary system?

2. What were the main advantages of the gold standard?

3. What is the name of the international monetary system that formed in 1944 following the demise of the gold standard?

Answer 1

Ans.1.Gold Standard: Gold Standard is an example of currency or paper form whose value is directly related to Gold.

Ans.2. Advantages of Gold Standards:

1.Minimising Risk: The gold standard help the countries in minimising risk between various currencies in the world.

2.Managing monetory policies: The gold standard help in managing efficient monetory policies for the country, so that flow of money will continues.

3. Maintaining trade balance: It help the countries to maintain trade balance between various countries. In case of currency risk, the countries can purchase gold from other countries.

Ans.3.Bretton wood system is the name of the international monetory system that formed in 1944 following the demise of the gold standard.