Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. marking the benchmarks along your route (ie, brett

Marking the benchmarks along your route (ie, Bretton Woods, Smithsonian, Jamaica, Plaza, and the Louvre Accords,...

90.2K

Verified Solution

Question

Economics

Marking the benchmarks along your route (ie, Bretton Woods,Smithsonian, Jamaica, Plaza, and the Louvre Accords, etc), tracethis evolution from its origins in the gold standard, through thefixed and the floating exchange rate systems to the managed floatsystem we are living in today (15 pts).

Answer & Explanation Solved by verified expert
3.7 Ratings (373 Votes)
ExchangeRate Systems A fixed exchange rate sometimes called a pegged exchange rate is a type of exchange rate regime in which a currencys value is fixed or pegged by a monetary authority against the value of another currency a basket of other currencies or another measure of value such as gold Monetary Order A set of laws and regulations that establishes the framework within which individuals conduct and settle transactions ExchangeRate System A set of rules that determine the international value of a currency Convertibility The ability to freely exchange a currency for a reserve commodity eg gold or reserve currency There are benefits and risks to using a fixed exchange rate system A fixed exchange rate is typically used to stabilize the exchange rate of a currency by directly fixing its value in a predetermined ratio to a different more stable or more internationally prevalent currency or currencies to which the currency is pegged The Gold Standard Under this system the external value of all currencies was denominated in terms of gold with central banks ready to buy and sell unlimited quantities of gold at the fixed price Each central bank maintained gold reserves as their official reserve asset The Gold Standard As an Exchangerate System Allowed the exchange of a currency both domestically and internationally at the mint parity rate for the currency Determines the international exchange value of the currency between gold and the currency Positive of a Gold Standard Creates longrun stability of the nations money stock and longrun stability of prices and exchange rates Changes in a nations money stock depend only on changes in the mining and production of monetary gold Using monetary gold does not require a central bank    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A 300kg roller coaster at an amusement park is at rest on top of a 30m...

Physics
Q

1. During a? one-month promotional? campaign, Fran's Flix gave either a free DVD rental or a?...

Advance Math
Q

During the early stages of meiosis, centrioles will position themselves at opposite ends of the...

Biology
Q

Dickic Cell All

Biology
Q

If an object is 8 cm from a lens and produces an image 4 cm...

Physics
Q

Suppose that pregnancies for all women are known to have a mean duration of 282...

Statistics
Q

Given f x write an equation for f x and then graph f x and...

Algebra
Q

You have just landed at temporary assignment at a small retail company in your area....

Accounting
Q

RGENT: NEED ANSWER ASAP PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT...

Accounting
Q

An impairment loss has the effect of Multiple Choice Decreasing total assets. Decreasing net income....

Accounting
Q

On August 31, XYZ Co. partially refunded SAR180,000 of its outstanding 10% note payable made...

Accounting
Q

43) In evaluating different alternatives, it is useful to concentrate on ________. A) variable costs...

Accounting