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Essay

International Monetary System and Balance of Payment

Essay specific features

 

Issue:

Business

 

Written by:

Andrew B

 

Date added:

June 22, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2054

 

Was viewed:

2036 times

 

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Essay content:

Gold was the demand and as such many countries accepted it as a common medium of exchange. Despite it acceptance on in the international market, many times there were discontentment between trade members as it was not a stable medium of exchange. A major force that affects currency exchange rates is the Balance of Payments (BOP) of the various member countries...
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For this reason, governing bodies such as the IMF were established for member countries that may have difficulties keeping their Balance of Payment out of deficit. INTERNATIONAL MONETARY SYSTEM (IMS) - The IMS could be defined as the establishment of rules, customs, practices and institutions that deal with money - debts, payments, investments - by which countries value and exchange their currencies internationally - IMS exist because most countries have their own currencies and because it is necessary to have since businesses must be conducted across international barriers...
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