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gold bullion standard (F3)<br />A fixed exchange rate system which existed in its purest form from 1880 to 1914. National currencies were valued in terms of weight units of gold, and exchange rates were fixed through the medium of gold. If international transactions were not in balance then internal adjustment was needed in the debtor country. Currencies on the gold standard were convertible into each other merely with the cost of shipping gold from one country to another. The key player of the system was the CENTRAL BANK of each COUntry as it had the tasks of contracting the internal money supply - in the case of a balance of payments deficit to produce a credit contraction, and the reverse in the case of a balance of payments surplus. Both domestically and internationally, gold was ideal because of its unique qualities as a standard of value and as a medium of exchange. It applied the ONE-PRICE LAW throughout the world, permitting gold to flow according to the price specie-flow mechanism. But too little co-operation between the central banks (many of whom were reluctant to follow the harsh rules of the system) weakened the automatic effects of the gold standard. The gold standard was in force in the UK from 1717 to 1931 (apart from the Napoleonic Wars and the First World War). Before the First World War the BANK OF ENGLAND, as the CENTRAL BANK of the creditor country of the world, operated according to
<strong>Participation agreement</strong> Agreement with the MDHE that permits a school to participate in the state student assistance programs.
20 subsidiary (L4)<br />A subsidiary of a US bank holding company or a bank foreign to the USA permitted by the FEDERAL RESERVE on a case-by-case basis to engage in underwriting and security dealing. The section is part of the Bank Holding Act.
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