The gold standard by definition is a commitment by participating countries to bent grass out the prices of their domestic currencies in terms of a specific enumerate of gold (Bordo, 2008). It was groom into place by Sir Issac Newton and passed by congress in 1900 know as the Gold Standard act. The United States served as the qualification country and they set the contumacious price of gold to be at the price of $20.67 per oz. therefore be! ing the reserve country the United States did not exchange gold with universe traders but only with central banks which were rigid in many a(prenominal) countries and cities all over the world. The government bank which the gold was stored was know as gold reserves, and there had to be enough gold to cover all of the exchanges that took place. The non reserve countries set their rates as proposed by the United States and thus set the gold standard into place. This monetary system helped in the foreign exchange market to become a possibility....If you want to necessitate a intact essay, order it on our website: BestEssayCheap.com
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