gold standard, monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold. The currency is freely convertible at home or abroad into a fixed amount of gold per unit of currency.
Which of the following is true of the gold standard as the international monetary system? The volume of paper currency could not exceed the gold reserves.
The Gold Standard was a system under which nearly all countries fixed the value of their currencies in terms of a specified amount of gold, or linked their currency to that of a country which did so.
Gold standard? A monetary standard under which the basic unit of currency is equal in value to and exchangeable for a specified amount of gold.
(i) The monetary unit is defined in terms of certain weight and fineness of gold. ADVERTISEMENTS: (ii) All gold coins are held as standard coins and considered unlimited legal tender. (iii) All other types of money (paper money or token money) are freely convertible into gold or equivalent of gold.