Question

The main objective of a sound monetary standard is :
(1) To maintain stability in the currency's internal value

(2) To maintain stability in the currency's external value
(3) To maintain stability in the currency's internal and external value
(4) None of the three​

Answer 1

Answer:

To maintain a country's internal and external value.

Explanation:

The primary objective of a sound monetary standard is to maintain price stability.

This is done both internally and externally so as to avoid prolonged inflation in a country.

It is also done to prevent prolonged deflation.

A sound monetary standard prevents an economy from crashing because it prevents inflation and encourages investors to invest in that particular economy because of the returns on interests.

Answer 2

Answer:

The main objective of a sound monetary standard is to maintain stability in the currency's internal and external value

Explanation:

These are set of rules governing the supply of money in the economy. That may also affect the real economic output. With the aim of maintaining the future inflation and deflation of money and hence maintaining a stability in the country's financial conditions. The two systems namely, the banking and the financial system are interacting with the money standards to see that the requirement is met.