A fiduciary monetary standard exists when the value of a currency
A) cannot be determined.
B) is convertible to a fixed quantity of gold.
C) depends upon the public's confidence that the currency can be exchanged for goods and services.
D) increases with inflation.

Question

Quizplus · Accepted Answer

A fiduciary monetary standard exists when the value of a currency is based on public confidence in its ability to be exchanged for goods and services. It is not convertible to a fixed quantity of gold, nor does it increase with inflation.

A Fiduciary Monetary Standard Exists When the Value of a Currency