What are the basic features of the modern monetary system?

The main features are: currency is paper money issued by the central bank, paper money does not maintain equivalence with gold and silver, money is issued through credit procedures, paper money has unlimited legal capacity. The essential features of the modern monetary system are: the expansion of monetary accumulation and the capitalization of accumulated money. Monetary system is the state of the relevant elements of the currency, the organization and management of currency circulation to provide for the formation of the system, a perfect monetary system can ensure the stability of the currency and currency circulation, to ensure that the currency to play a normal function.

I. The content of the monetary system generally includes:

(a) the provisions of the monetary material, that is, to determine which commodities can be used as currency material.

(ii) the specification of the monetary unit, i.e., the name of the monetary unit and the "value" of the monetary unit.

(c) To define the primary and secondary currencies: the primary currency is the basic currency in circulation in a country, and the secondary currencies are the smaller denominations below the primary currency unit.

(iv) Free minting and restricted minting, i.e., the regulation of the right to mint money under the circulation of metallic money.

(v) Limited and unlimited legal tender, i.e., the law regulating how much money has the capacity to pay.

(vi) The system of provisions.

2. There are the following main types of monetary systems:

1., silver mono standard is a monetary system with a long history of using silver as the standard currency.

2, gold and silver compound standard system is the gold and silver two kinds of minted coins were at the same time legal for the local currency monetary system.

3, the gold standard system is to gold as the standard currency of a monetary system, including gold coin standard system, gold bullion standard system and gold exchange standard system. Gold standard system: gold coins can be freely minted; coins and bank notes can be freely exchanged for gold coins, gold can be freely exported into the country. Gold coin standard system: It was a relatively stable monetary system, which played a facilitating role in the development of capitalism. But with the development of capitalism the stabilizing factor of the gold coin standard system was destroyed.

Three, currency circulation

1, will enter the circulation of money (currency) can be distinguished between the local currency and coins. The local currency is in accordance with the national provisions of the monetary unit minted by the mint, also known as the main currency. The secondary currency is the main currency below the small amount of currency, for daily sporadic transactions and the use of change

2, the face value of the local currency and the actual metal value is consistent with the full value of the currency, the state provides for the local currency has unlimited legal capacity. Countries that allow the local currency to be freely minted and melted are not allowed to put the local currency into circulation if it is worn beyond the weight tolerance, but it can be exchanged for new currency to the government-designated institutions, i.e., over-differential exchange.

3, auxiliary coins are generally minted with base metals, and the actual value they contain is lower than the nominal value, but the state stipulates by decree that they are within a certain limit. Coins have only limited legal tender, but can be freely exchanged with the main currency. Auxiliary coins can not be freely minted, only allowed to the state minting, and its minting income is an important source of state revenue.

4, bank notes and paper money is the precious metal reserves and the corresponding gold and silver currency can not meet the needs of the development of the commodity economy to expand the product. Bank notes are issued by the bank, based on commercial credit credit money. The premise and background of the early circulation of bank notes is that the holder of the notes can always exchange metal currency with the issuing bank.