[ mˈʌnɪtəɹi stˈandəd], [ mˈʌnɪtəɹi stˈandəd], [ m_ˈʌ_n_ɪ_t_ə_ɹ_i s_t_ˈa_n_d_ə_d]
How to use "Monetary standard" in context?
The monetary standard is the quantity of money in circulation in an economy. It is determined by the central bank and affects the purchasing power of the currency. There are three main types of monetary standards: fiat, commodity, and barter.
A fiat monetary system uses a legal tender currency that is not tied to any commodity. The US dollar is an example of a fiat currency. The government promises to print new units of the currency until there are no more, which creates inflation. A commodity standard is based on the supply and demand of a specific commodity. The US dollar is an example of a commodity standard.
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