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The way the currency of a country
is issued, managed and regulated called the monetary
system of the country. Monetary standards may be of
different kinds. |
1. Monometallism:
If one metal is the ultimate measure of value in the
country standard will be metallic. If one metal is
the standard that monometallism. If that metal is
gold it will be called gold standard similarly if
that is silver it will be called silver standard.
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2. Bi-Metallism:
When two metals are standard metals, monetary standard
will be called bimetallism. Under this system a ratio
is fixed by law between the values of these two metals. |
3.
Paper Standard:
Where the money of the country is not convertible directly
or indirectly into any metal, it will be called paper
standard. Monetary
Standards |
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4.
Exchange Standard:
If any country keeps the value of standard coins fixed
in terms of some foreign money for purposes of foreign
trade, the monetary standard is called exchange standard. |
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