位置16的问题 Fiat currency is backed by a physical commodity like gold or silver.TrueFalse

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BlackTom AI · Accepted Answer

The prompt presents a true/false item about fiat currency and asks whether it is backed by a physical commodity like gold or silver.
Option 1: True. This statement would be claiming that fiat money is backed by a physical commodity. In standard monetary systems, fiat currency is not backed by a physical commodity; it is declared legal tender by the government and its value comes from trust, regulation, and monetary policy rather than a commodity reserve. Therefore, labeling fiat currency as backed by gold or silver is incorrect in the common understanding of modern fiat systems.
Option 2: False. This option asserts that fiat currency is not backed by a physical commodity such as gold or silver. This aligns with the conventional definition of fiat money, where currency value is derived from government decree and monetary policy, not from commodity reserves. While some historical currencies or special cases (like gold-backed pegs or hybrid systems) exist or have existed, they are exceptions rather than the norm for fiat money today.
In evaluating the two choices, the first would misrepresent the typical nature of fiat currency, and the second accurately reflects the standard explanation that fiat money is not backed by physical commodities. When understanding monetary systems, distinguishing between fiat money and commodity-backed money helps prevent this common misconception.

位置16的问题 Fiat currency is backed by a physical commodity like gold or silver.TrueFalse

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位置16的问题 Fiat currency is backed by a physical commodity like gold or silver.TrueFalse

View Explanation

Log in for full answers

Similar Questions

Fiat money has

Fiat money has value because ______. Select all that apply.

Part 1Which of the following is a disadvantage of using fiat money LOADING... ​?Part 2 A. Public authorities may be tempted to produce too much of it B. Fiat money is not easily divisible or suitable for small purchases C. Fiat money is not portable or widely accepted

Part 1Which of the following is a disadvantage of using fiat money LOADING... ​?Part 2 A. Fiat money is not portable or widely accepted B. Fiat money is not easily divisible or suitable for small purchases C. Public authorities may be tempted to produce too much of it

The word "fiat" is

Money whose value derives entirely from its official status as a means of exchange is known as:

93. Which of the following does not explain what backs the money supply in the United States? A. It is backed by gold. B. It is widely accepted in transactions. C. It is designated "legal tender" by the federal government. D. It is relatively scarce.

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Part 1Which of the following is a disadvantage of using fiat money LOADING... ?Part 2 A. Public authorities may be tempted to produce too much of it B. Fiat money is not easily divisible or suitable for small purchases C. Fiat money is not portable or widely accepted

Part 1Which of the following is a disadvantage of using fiat money LOADING... ?Part 2 A. Fiat money is not portable or widely accepted B. Fiat money is not easily divisible or suitable for small purchases C. Public authorities may be tempted to produce too much of it