Most Western nations were on the gold standard for currency exchange rates from 1876 until 1914
Today we have several different exchange rate regimes in use, but most larger economy nations have freely floating exchange rates today and are not obligated to convert their currency into a predetermined amount of gold on demand. Currently several parties still call for the "good old days" and a return to the gold standard. Develop an argument as to why this is a good idea.
What will be an ideal response?
Answer: The gold standard forces a nation to maintain sufficient reserves of gold to back its currency's value. This helps control inflation, as a country cannot print additional money without sufficient gold to back it up. The gold standard eases international transactions as there is little uncertainly about exchange rates for trade with foreign countries.
You might also like to view...
Quan uses a periodic inventory system. At the end of April, Quan had 20 units on hand. April 1 On hand, 10 units @ $2 each $ 20 19 Purchased 90 units @ $3 each 270 Goods available for sale $290 If Quan, Inc uses the weighted average cost inventory method, how much is cost of goods sold for April?
a. $240 b. $250 c. $230 d. $232
Virtual expatriates are more expensive than traditional expatriates.
Answer the following statement true (T) or false (F)
A campaign to organize nonunion workers into a union and gain recognition by their employer is known as a _______________________________.
Fill in the blank(s) with the appropriate word(s).
The loan that a lender provides to enable a borrower to purchase real property is a mortgage.
Answer the following statement true (T) or false (F)