The United States is currently on a paper (or fiat) monetary standard, where the value of its currency is not based on physical commodities like gold or silver. Historically, the U.S. was on a commodity monetary standard, such as the gold standard, where the value of its currency was directly linked to a specific amount of a commodity.

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The United States

Question 143

Multiple Choice

The United States:

A) has always been on a paper monetary standard.
B) has always been on a commodity monetary standard.
C) is currently on a paper monetary standard but was previously on a commodity monetary standard.
D) is currently on a commodity monetary standard but was previously on a paper monetary standard.

Correct Answer: