Final answer:
Gold par value refers to the b. amount of a currency needed to purchase one ounce of gold. This was a standard under the gold-backed monetary systems like the Bretton Woods system, where currencies were directly linked to gold and the US dollar had a fixed gold parity.
Step-by-step explanation:
This concept was particularly important during the period when currencies were tied to the gold standard, which meant that the value of a currency was directly related to a specific quantity of gold. In the past, many currencies, including the US dollar, were backed by precious metals like gold and silver. For example, under the Bretton Woods system, the US government guaranteed that every US dollar was backed by gold at the rate of one ounce of gold per 35 US dollars.
The par value also implied that other currencies had a fixed parity both with gold and with the US dollar, and international financial entities such as the International Monetary Fund (IMF) were tasked with monitoring this parity. This system was in place until the early 1970s when most countries moved away from the gold standard and began valuing their currencies based on market forces of supply and demand.