Can You Define Bi-Metallism And Its Advantages?

Bi-Metallism:

The monetary system where both gold and silver are standard metals and their ratio of exchange is fixed and maintained by law and they are also unlimited, legal tender is called Bi-metallism.

Advantages: Following are the important advantages of this system.

Price Stability:
In case of adoption of dual system stability in the price level can be achieved easily. If at one time the total out put of gold falls, the supply of silver can be increased. If the supply of Gold increases then the supply of Silver can be decreased. Thus we find that this system can ensure the price stability.

Shortage of Metal:
If one metal like gold is used as currency by the entire world, then the supply would fall short of the currency requirement of the whole world. So this system is the most suitable.
Facility for International Trade: Bi-metallism facilitates international trade because ratio of exchange between gold and silver can be established easily, with all the countries which are on gold or silver standard.

Easily for Bank:
The Bi-metallism makes it easy for the banks to keep the necessary cash reserves against liabilities.
Depreciated Metal Value does not Fall:
Bi-metallism is very helpful in arresting the price of the value of the depreciated metal.