Features of Gold Currency Standard

The gold currency standard is a monetary system in which the value of a currency is determined by a fixed quantity of gold. The following are the features of the gold currency standard:

Circulation of Gold Coins
Gold coins are used as the primary currency in the gold standard system. They are circulated as a medium of exchange and are accepted as a store of value.

No Circulation of Paper Money
In the gold currency standard, there is no circulation of paper money. The value of the currency is directly linked to the value of gold, and the paper money is backed by the gold reserve.

Free Coinage
One of the features of the gold currency standard is the free coinage of gold. This means that anyone can bring gold to the mint and have it transformed into gold coins of the same weight and purity without any charge.

Free Import-Export of Gold
In the gold currency standard, there is free import-export of gold. This means that gold can be freely traded across borders without any restrictions.

Not a Feature of Gold Currency Standard

The following is not a feature of the gold currency standard:

Circulation of Paper Money
Unlike the modern monetary system, the gold currency standard does not involve the circulation of paper money. The value of the currency is directly linked to the value of gold, and paper money is backed by the gold reserve.