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
Q.2. On the basis of the analysis of the case above, what is your opinion about legalizing marijuana in Canada ?mum 100 words accepted#

Supplementary Reserve, Requirements/Special Deposit If the Central Bank feels that there is too much money in circulation, it can in addition require commercial banks to mainta

Evaluate critically chamberlin''s model of monopolistic copetition

Advantages a. They are less costly to administer because the producers and sellers themselves deposit them with the government. b. If levied on goods with inelastic deman

Takes the help of macroeconomics Managerial economics incorporates certain aspects of macroeconomic theory. These are important to comprehending the circumstances and environme

Q. What is Transport and Storage Economies? As the output increases, unit cost of transportation of raw materials, intermediate products and finished products fall. This is for

Real Rigidities in the Labour Market   New Keynesian  theories of the labour market help in explaining  the existence of involuntary unemployment. The theories also attempt to

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

Let consider the economy (above) again where the following set of stocks is traded:     x 1 =(2,2,0)    x 2 =(1,0,3)  x 3 =(0,2,4)          for the prices (p 1 , p 2 , p 3 )=(1,

Illustrate the concept of present value. The Concept of Present Value: While someone borrows money for a year, there the interest rate is the price, computed as a percent