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INTERNATIONAL financial SYSTEMS AND MARKETS BY S. BAYO ADETIFA (BSC, FCIB, FCA, AMNIM, ACTI, ACS, MBA MSC) CHAPTER 5 OF INTERNATIONAL logical argument FINANCE IN NIGERIA BY THE SAME AUTHOR 5.01INTRODUCTION The centre-piece of international financial systems and markets is Europe and the North the States with emphasis on the linked States which has played a rattling prominent role in the programmes and policies of the multilateral financial institutions much(prenominal) as the external airscrew box for Reconstruction and reading (IBRD) and the Bretton Wood Systems 5.02EVOLUTION OF THE INTERNATIONAL monetary SYSTEMS At the beginning of the International monetary systems, itemly amidst the early nineteenth and twentieth centuries amber was the beat of measuring rod of more international currencies. lucky has the features of the raw day bills because of its desirable properties much(prenominal) as portability, acceptability, durability and recognisability. The intrinsic appraise of metal(prenominal) as a meter of measurement is approximately invariably able to the extrinsic value, hence its achievement equal is really high school with serious limitation of availability. 1 particular ingredient of the imagination of bills non applicable to Gold as goodness money is divisibility.

Gold is not advantageously dividable and where divisible not easily measurable. Besides, it is very rattling(a) to produce and limited in supply, hence countries using the Gold standard found substitutes in Government issued paper money (Bank notes and deposits). However, such issues not approve by Gold harbor is called Fiduciary issue which ordinarily leads to inflation. 5.03THE BRETTON WOODS SYSTEM The Gold standard gain prominence in the measurement of the United States horse (US$) and Pounds Sterling (£). For example the trade rate of the United States dollar bill was fixed at US$20.67 per ounce of gold in the midst of 1834 and 1933 while that of belabor sterling was fixed at £3.17s . 10/12p between 1821 to 1914, thus, both country using the...If you lack to determine a copious essay, order it on our website: Ordercustompaper.com

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