Gold, Managerial Economics

Assignment Help:

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.


Related Discussions:- Gold

Circular flow of income, Explain a circular flow of income in a frugal econ...

Explain a circular flow of income in a frugal econmomy with diagram

The central bank, The Central Bank These are usually owned and operate...

The Central Bank These are usually owned and operated by governments and their functions are: i.      Government's banker :  Government's need to hold their funds in an ac

State the method of price elasticity of demand, Price elasticity of demand ...

Price elasticity of demand The price elasticity of demand is defined as the degree of sensitiveness or responsiveness of demand for a commodity to the changes in its price. Mo

Describe the gift exchange model of reciprocity, Q. Describe the gift excha...

Q. Describe the gift exchange model of reciprocity? George Akerlof (1982) develops a gift exchange model of reciprocity in that employers offer wages unrelated to variations in

Define thevariable factor of production, Define theVariable factor of produ...

Define theVariable factor of production The input level of a variable factor of production can be diverse in the short run. Raw material inputs are believed as variable fact

Explain about inventory economies, Q. Explain about Inventory Economies? ...

Q. Explain about Inventory Economies? Inventory Economies: Role of inventories is to aid the firm in meeting random changes in the output and the input sides of the operations

Explain the point and arc elasticity of demand, Point and arc elasticity of...

Point and arc elasticity of demand The elasticity of demand is conventionally measured either at a finite point or between any two finite points, on demand curve. The elasticit

Optimal input combination for maximisation of output, Q. Optimal Input Comb...

Q. Optimal Input Combination for Maximisation of Output? Equilibrium conditions of the firm are identical to the above situation which is, iso-cost line must be tangent to the

A cost-push inflation , A cost-push inflation have as a result of workers' ...

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

Monopolistic competition, Evaluate critically chamberlin''s model of monopo...

Evaluate critically chamberlin''s model of monopolistic copetition

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd