A fiduciary monetary system ultimately rests on
A)the value of the metal backing up the system.
B)the public's confidence in the system.
C)the value of the assets backing up the system.
D)the difficulty of counterfeiting the currency.

Question

Quizplus · Accepted Answer

A fiduciary monetary system depends on the trust and confidence of the public in the government or institution issuing the currency, rather than on a physical backing like gold or silver. Therefore, the best answer is B, as faith in the system is essential. The other options (A, C, and D) are not relevant to a fiduciary monetary system.

A Fiduciary Monetary System Ultimately Rests on