A ________ when the value of a currency depends upon the public's confidence that the currency can be exchanged for goods and services.
A)moral responsibility
B)a conversion to a fixed quantity of gold is necessary
C)fiduciary monetary standard exists
D)monetary union is necessary

Question

Quizplus · Accepted Answer

A fiduciary monetary standard exists when the value of a currency is not linked to a commodity, such as gold, but instead is based on the public's trust in the government or central bank that issues the currency. This means that the value of the currency depends upon the public's confidence that the currency can be exchanged for goods and services, making it a form of trust-money. Moral responsibility and the need for a conversion to a fixed quantity of gold or monetary union are not directly relevant to this concept.

A ________ When the Value of a Currency Depends Upon