The Evolution of the Global Monetary

he international monetary system has evolved as governments' needs have changed and as these governments respond to domestic

nd international conditions. Private investors and speculators also have a major impact, sometimes to the disadvantage of specific

ountries. During the

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th century, the international monetary system underwent major transformations to respond to the needs of

overnments, international businesses, and currency traders.

Ithough supply and demand determine the relative value of any two currencies through the foreign exchange market, governments

Iso have a major impact. The exchange rate policy adopted by a government will affect international business operations in that

ountry. Because discussion and debate still surround the institutions in the system, businesses need to be aware of their history and

volution.

Review the developments in the evolution of the global monetary system and place them in the right sequence

in the timeline chart. Roll over each development to reveal a hint.