Question

Talk about the different monetary standards that are applied by many countries today?

Answer 1

Monetary standard is control over supply of money in country's economy.It is a monetary system of practice which country adopts for regulating quantity of money.It also regulates exchange value for money.Major monetary standards are two;

Metallic standard and paper standard.

Metallic standard means value of money converted to metal.Metal may be gold or silver.On the basis of number of metal,Metallic standard divided into two.

1)Monometalism-money converted to one metal.It may be gold or silver.

2) Bimetalism-It is called doubled standard because two metals are used to express exchange value of money.Two metallic standards operate simultaneously.

In world,most of the countries abandoned metallic monetary standard.

Paper standard:

In paper standard,inconvertible using a measure of money standard.Paper standard is the most using measure of monetary standard in the world.Both currency and coins used for exchange value for money.