Question

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

Answer 1

As we know that, each and every country has it's own monetary standard. Every country has it's own currency as well. Different countries are different kinds of money like US has dollar, China has yen, India has rupee, Pakistan has rupee, saudi arabia has has Saudi riyal etc. This money is backed by the government and is usually called "legal tender." Legal tender is money that must be accepted as a form of payment in that country.

The major world currencies are British pound Sterling, U.S Dollar, European Euro, Japanese Yen,. Indian Rupee, etc. The most valuable currency of world is Kuwaiti Dinnar.
When you go to another country, you will usually want to get some cash of the local money. You can do this by exchanging your money for some of that country's money. This is done by using exchange rates. For example, if you were in Europe and wanted to trade U.S. dollars for 100 Euros. If the exchange rate was 1 Euro equals 1.3 U.S. dollars then you would have to give them 130 U.S. dollars to get 100 Euro.

The world was under the gold standard, flexible exchange rate standard and floating exchange rate standard. The countries use paper money, plastic money etc to make Purchases. Each and every standard has it's pros and cons. The monetary standard used in India is paper currency.The United States abandoned the gold standard on 15 August 1971. Since then it has been using fiat money, which is not backed by any commodity. It derives its value solely from government authority. This is sometimes also known as a "managed currency standard".

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