Question

Differentiate between monetary standard and gold standards

Answer 1

Monetary standard refers to the monetary system of a country, It is also the principle method of regulating the quantity and the exchange value of standard money.

Monetary standard has three main types :

Monomentalllism or single standard.

Bimentalllism or double standard

Paper currency standard  or managed currency standard

Gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

The three types can be distinguished by specie, bullion and exchange.

In the specie standard the monetary unit is associated with the value of circulating gold coins, or the monetary unit has the value of certain circulating gold coin, but other coins may be made of less valuable metal.

In bullion standard is a system in which gold coin do not circulate .

The gold exchange standard usually does not involve the circulation of gold coin.

Answer 2

Monetary standards are defined as the principal method used for regulating the quantity and also the exchange value of standard money. It refers to a country's monetary system.

Gold Standard is defined as the unit of money that is exclusively defined by the law as a certain amount of gold, which is of a specified weight and fineness. It is referred to as the country's monetary system where the currency or paper money has a value that is directly linked to gold. It is taken into account when all forms of money with in a monetary system are kept at markets.