Monetary System compulsory paper "Monetary Base credit"

Knows Monetary System paperwork legal or mandatory or al-Qaida credit for cash as a system that is not attributed in which the unit settling accounts monetary state (pounds, dollars, etc.) to a particular commodity (gold or silver) but you know alone and the force of law behind it, any of the actual destination and strength the issuer, they know their own name, and therefore does not become a cash terminal or basic commodity of commercial value, but paper money has the force of law. Under the credit system for cash Monetary paper has become Optional Cash mandatory self and non-convertible into gold or silver or any other metal, and thus take the place of cash commodity and became a cash terminally or essential know Unit settling accounts cash for him alone, and has become a cash deposit only kind of criticism optional rolling.

Monetary paperwork terminal derives his being from the domestic law of the issuer, in this case the state, and is trading within the political boundaries of the state which issued, and becomes the external value of the unit of this criticism is determined in the foreign exchange markets free and in accordance with the factors that govern the submission of the demand for it, there is no longer a limit, upper or lower exchange rates, as is the case for the limits of the export and import of gold. As has become a cash paper cash orbit by the monetary authorities state, where she holds the monetary authorities state (central bank) responsibility to determine the rate of change at a particular time, guided by the determined rate of change to the objectives of certain economic targets to contribute to the achievement, and it checks the link between the change in money supply and economic activity.

Characteristics of paper monetary system of compulsory

The Monetary System paperwork mandatory or legal is the finest ever in the evolutionary ladder of cash throughout history, making it effective in the face of crises own cash, as it is also a system is not restricted, where the associated version cash it to the need for state economic money is not linked to the size of their possession State of gold or silver or any other precious metals. Enjoy the monetary system of paper with many of the characteristics Nord, for example, mandatory handle banknotes, they are mandatory within each state, also centralized version Monitory's Legal Authority and only one is the central bank or the State Treasury or the competent state (where different its name from one country to another), banknote worthless non-legal value but derive their value from the force of law, which were issued to build it from the issuer and the state, also considered the purchasing power of paper money is a constant as long as the government could issuance of the quantity you want them when necessary, and here we pause simple, in some countries that lack their governments to statesmanship Economic conducting version randomly leading to economic disaster for those countries where lose their currencies to their purchasing power over time to the point of perhaps not worth the paper and ink which is printed on it, at the time of the Egyptian revolution in the twenty-fifth of January, the Board Egyptian military issued large amounts of money, which led to high inflation and the Egyptian pound has lost much of its purchasing power and prices rose indiscriminately affected the lives of people.

 

Paper money has a great deal of flexibility in the interview needs and transactions, the monetary system paperwork system locally in nature, where the force of law, which were therefore those currencies is not binding for other countries outside its borders, a system clock allows the link between the rate of change in the version of the cash and the rate of change in the level of economic activity, the state, as well as market transactions Interior are in banknotes are characterized by general acceptance and confidence of individuals where, and confers by law legal tender is limited to meet the obligations or debt, while foreign transactions (outside the boundaries of the state), the state is that you set the price of foreign exchange in order to convert national currency into foreign currencies and fixed exchange rate convertible into gold.

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