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Questions and Answers
What are the two main classifications of monetary standards?
What are the two main classifications of monetary standards?
What is a monetary standard?
What is a monetary standard?
What is a commodity standard?
What is a commodity standard?
What are the two types of commodity standards mentioned in the text?
What are the two types of commodity standards mentioned in the text?
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What are the three types of gold standards mentioned in the text?
What are the three types of gold standards mentioned in the text?
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Which statement accurately describes the gold coin standard?
Which statement accurately describes the gold coin standard?
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What are the three types of silver standards mentioned in the text?
What are the three types of silver standards mentioned in the text?
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What is the key difference between the gold coin standard and the gold bullion standard?
What is the key difference between the gold coin standard and the gold bullion standard?
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What is the primary advantage of the gold bullion standard over the gold coin standard?
What is the primary advantage of the gold bullion standard over the gold coin standard?
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Which statement accurately describes a characteristic of the gold bullion standard?
Which statement accurately describes a characteristic of the gold bullion standard?
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Which economist first suggested the idea of the gold bullion standard?
Which economist first suggested the idea of the gold bullion standard?
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What was the official United States price of gold per ounce when it was on the gold bullion standard from the 1930s until 1971?
What was the official United States price of gold per ounce when it was on the gold bullion standard from the 1930s until 1971?
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Study Notes
Monetary Standard in the Philippines
- A country's monetary standard refers to the rules and institutions governing the supply of money in its economy.
- The standard indirectly affects prices and can influence the rate of growth of real economic output, depending on expectations.
Classifications of Monetary Standard
- Commodity Standard: A monetary system where the purchasing power or value of the monetary unit is equal to the value of a designated quantity of a particular commodity or set of commodities.
Monometallic Standard
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Gold Standard: A monetary system where the value of the monetary unit is equal to the value of a designated quantity of gold.
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Gold Coin Standard: A country allows the conversion of gold bullions into coins, which are freely obtained by citizens in exchange for other forms of money.
- Characteristics:
- Monetary unit is stated in a definite weight and fineness of gold.
- People are free to convert their bullions into coins.
- Gold can be used in any manner.
- Gold can be freely imported and exported.
- All other kinds of money and bills are exchangeable to gold coins.
- Money supply is determined by the amount of gold reserves.
- Free coinage of gold, where citizens can convert gold bullions into coins.
- Free market of gold, where people are free to import and export gold.
- Characteristics:
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Gold Bullion Standard: A country holds reserves of gold in the form of bars rather than coins, removing gold from monetary circulation.
- Characteristics:
- Monetary unit is defined in terms of certain weight and fineness of gold.
- All gold coins are held as standard coins and considered unlimited legal tender.
- All other types of money are freely convertible into gold or equivalent of gold.
- Unlimited coinage of gold at no cost.
- Free and unlimited melting of gold.
- Import and export of gold is freely allowed.
- Monetary authority is under permanent obligation to buy and sell gold at the fixed price without limit.
- Characteristics:
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Gold Coin Standard: A country allows the conversion of gold bullions into coins, which are freely obtained by citizens in exchange for other forms of money.
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Description
Explore the history of Philippine currency and the establishment of monetary standards in the Philippines. Learn about the rules and institutions governing money supply in the economy.
