Transcript Shibli sir
PRESENTATION ON
GOLD BULLION STANDARD
Sanzida Begum
Id: 17-002
Gold Bullion Standard
A gold standard under which the
coinage and circulation of gold is usually
prohibited but the shipment of gold in
international transactions is permitted
and a gold bullion reserve is maintained
as a support for the currency.
Features of the Gold Bullion standard
1. There is no circulation of gold coins.
2. Coinage of gold is not permitted.
3. Paper currency notes are not fully backed by gold
reserves. Yet, the government recognizes
convertibility of notes into gold.
4. The monetary authority undertakes the sale and
purchase of gold at fixed prices.
5. Import and export of gold are fully and freely
allowed.
Advantages
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Economy in the use of gold
Imparts elasticity to monetary system
Proper use of gold in public interest
Stability in the external value of currency
Automaticity of its working
Disadvantages
• Inherent lack of liquidity
• Unusual increase in the supply of gold cause prices
to rise abruptly
• Lesser public confidence
• Not self-regulating
Thank you…..