Question

Distinguish between gold standard and gold exchange standard ignou

Answer 1

• The gold standard is the term applied only when the coin has a value which is more than the value of the basic metallic content of the coin.
• Gold exchange standard is how gold standards move in this millennium.
• One of the basic characteristics of a gold standard is to hold gold reserves.
• When foreign exchange reserves are held and they are used in order to discharge various obligations in the global scenario thy form the true characteristics of gold exchange standards.