Foreign exchange markets Summary?

Question

You have been asked by a local college to write a lecture that explains the gold stndard and addresses the functions of the worlds major foreign exchange market?

Answer 1

Click on the link for an article which discusses the following sections:

* Foreign Exchange Market: What is it?
* Foreign Exchange Market Participants
* Foreign Exchange Rates
* Determination of Foreign Exchange Rates
* Foreign Currency Trading
* Types of Transactions
* Floating and Fixed Exchange Rates

Under the last topic, "Floating and Fixed Exchange Rates", you'll find a write-up of the gold standard. Here's an excerpt:
Under another system, the gold standard, U.S. households and businesses could exchange their dollars for gold. This practice was abandoned in 1933 during the Great Depression to allow freer expansion of money supply. After the abandonment of the gold-exchange standard, the foreign exchange market went from a relatively unimportant financial specialty to the forefront of international economics.