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…..