What is the importance of a monetary standard?

Answer 1

A monetary standard is what gives money value. Paper or coin currency has no inherent value; its value comes from the standard backing it up. For example, the monetary system in the United States runs on a gold standard. This means that all the money and commerce in the United States can be backed up with the gold the United States possesses. The monetary standard is important in that it allows the economy to function and for goods and servies to be bought and sold.