28546
AssignmentMultiple Choice

3.1 Money

Question 28546 • * HSA 26-27 Economics

In the United States today, what gives money its value?

Answer
A
People trust that dollars are valuable.
B
Dollars are backed by gold and silver.
C
Dollars can be exchanged for a precious commodity.
D
Money has a representative value.

Explanation

Today, U.S. dollars are fiat money: they are not redeemable for gold, silver, or another precious commodity. Their value is supported by public confidence that dollars will be accepted in exchange for goods and services, along with trust in the U.S. government and economy. So the correct choice is “People trust that dollars are valuable.”

AI-written and checked against the verified answer.

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