Gold was internationally accepted for paying for goods and services.
- Pros: Its limited supply caused high demand and it could be traded, stored, and melted into coins or bars making a good medium of exchange.
- Cons: Its weight made transport expensive, and if a ship sank, the gold was lost.
The Gold standard was an international monetary system in which nations linked the value of their paper currencies to a specific value of gold. The gold standard operated from the early 1700s until 1939.
Respond to the following:
Explain how the gold standard functioned and describe its evolution and collapse. Include information and any examples you may find from the book, as well as any other outside reliable resources if you would like to include any other outside information.
Must be at least 1page in length and include references.