Gold, Managerial Economics

Gold

Although currently no country uses gold as its national currency, gold has a long history of use as commodity money and has almost universal acceptability.  Gold is still regarded as money in international transactions and is an international reserve currency i.e. countries can hold their foreign exchange reserves in terms of gold and it is acceptable in international payments and is convertible.

The great advantage of gold as an international currency is the confidence people have in its ability to maintain its exchange value.  This stems mainly from the knowledge that world supplies of gold cannot easily and quickly be augmented.

Nevertheless, it is clearly wasteful to employ vast resources of men and capital to produce gold merely in order to store it away in central banks.  Besides, it is scarce i.e. not each country has it.

Posted Date: 11/30/2012 5:25:44 AM | Location : United States







Related Discussions:- Gold, Assignment Help, Ask Question on Gold, Get Answer, Expert's Help, Gold Discussions

Write discussion on Gold
Your posts are moderated
Related Questions
iwant presentation on united postal services on social cost and benefits

The Consumption Function The consumption function is the relationship  [expressed in mathematical or diagrammatic form] between planned consumption and other independent varia

Interest and the Keynesian Liquidity Preference Theory Interest is a factor income in that it is considered to be payment to or return on capital in the sense that it is payme

A cost-push inflation have as a result of workers' attempts to push up their wages. Thus, inflation does not have to be monetary phenomenon." Is this statement true, false, or unce

Explain trend projection method of demand forecasting with illustration.

Goals of the firm How much is produced by a firm depends on its objectives.  A firm which aims to maximise its sales revenue, for example, will generally supply a greater quant

NON-ACCELERATING INFLATION RATE OF UNEMPLOYMENT   During 1970s economists encountered a puzzle  in  the sense that  inflation and unemployment  data  did not  fit  into the Phi

ARGUMENTS FOR MONOPOLIES Although monopolies are usually hated mainly because their practice of consumer exploitation, there are some aspects of monopolies which are favourabl

SOME DIFFICULTIES IN MEASURING NATIONAL INCOME National Income Accounting is beset with several difficulties. These are: a.       What goods and services to include A

Disadvantages of product differentiation   a) Product differentiation generally reduces the degree of competition in the market.  It does this in two ways:          i.