Answered: What are the advantages of using gold…

What are the advantages of using gold standard? What is disadvantages? Picture out the economic situations if gold standard is used in today's time.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter18: Trading With Other Nations

Section18.2: Financing World Trade

Problem 4R

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The gold standard dramatically reduced the risk in exchange rates because it established fixed exchange rates between currencies. Any fluctuations were relatively small. This made it easier for global companies to manage costs and pricing. What are the advantages of using gold standard? What is disadvantages? Picture out the economic situations if gold standard is used in today's time.

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