Types of Monetary Standards First: The Silver Standard Silver was used as money, did not remain long due the huge quantities flowed from India and East Asia to Europe and America which devaluated silver, therefore, countries abandoned this standard and thereafter replaced by gold.

Second: The Gold Standard (1821 – 1931) Gold Standard represents the relation connecting the currency in circulation and the amount of gold forming it. The price of national currency would be determined by the price of gold locally or internationally. this standard allows the free movement of gold, buying and selling,importing and exporting.

This means that the price of the national currency against the foreign one is determined automatically (supply and demand,and on the basis of what the national currency contains from pure gold against the contents of pure gold in the other currency. There are three models of gold stander A-Model of the gold coins Standard B-Model of gold bullion Standard C-Model of gold exchange standard

A- Model of Gold Coins Standard This standard deal with two types of money: The first type represented by the gold metal money –coin- (like the Ottoman Lira). second type of the circulating money is the Paper Money which are convertible into its equivalent of gold. One of the conditions that ensure the function of the image of the gold coin is the freedom in converting gold bullion to coin, and the freedom of transferring the paper money in to the equivalent of gold.

B-Model of Gold Bullions standard No long could convert paper money to gold coins, but are turned into bullions since the value here is big (most probably equal one K.g.).

C-Model of gold exchange standard This means that the country may follow the gold stander in an indirect way and through the determination of its currency exchange rate against the another currencies that are able to be transformed directly into gold at the time.

The Collapse of Gold standard The gold started face many challenges which led many countries to give up the gold started: 1- The shortage of its amounts to meet the requirements for monetary system. 2-Expansion of cash (issuing ) was not accompanied by a proper expansion of the gold reserves as a cover for the national currency. 3-Improper distribution of gold reserves among different countries especially after occurrence of the First World War, as most of the gold reserves was concentrated in USA and France while the volume of gold reserves was much smaller in the other countries like Germany and other East Europe countries.

Third: The Bimetallism Standard Bimetallism Standard depends on the connection between the value of the national currency from one side, and the value of both metals gold and silver at the same time from the other side, As an example, we say that the U.S. dollar equals (1:15) i.e. one unit of gold and fifteen units of silver. However, applying this rule failed because of the difference of the market values of the two metals.

Fourth: Legal Paper Money Standard Legal Paper money standard is considered among the most recent monetary standard, as all the monetary standard, used in most of the world countries, are following this standard. The paper money has an absolute legal force comes from the law organizing its issuance. Furthermore the paper money holder doesn’t have the right to transfer it into its equivalent of gold.