Question

What is bimetallism and what are advantage and disadvantage?

Answer 1

Bimetallism is the economic term for a monetary standard in which the value of the monetary unit is defined as equivalent to certain quantities of two metals, typically gold and silver, creating a fixed rate of exchange between them.

Advantages

1. Price Stability :-

2. Shortage Of Metal :-

3. Facility For International Trade :-

4. Facility For Govt. :-

5. Easy For Bank :-


Disadvantages

1.Adequate Supply of Currency

2.Stable Price of Silver

3.Stable Exchange Rates

4.Encouragement to Foreign Trade

5.Easy to Keep Cash Reserves