A monetary system in which gold backs up paper money is called:

Question

Quizplus · Accepted Answer

The gold standard is a monetary system in which a country's currency is directly backed by gold. It means that a nation's paper money (i.e., currency) is convertible into a fixed amount of gold. The gold standard was widely used up until the 20th century and is sometimes still used today in a modified form. The other options are incorrect. The silver standard is a monetary system where a country's currency is directly backed by silver. The term "golden age" has nothing to do with monetary systems. The commodity standard is a monetary system where a country's currency is directly backed by a basket of commodities (e.g., gold, silver, oil, etc.) rather than just one.

A Monetary System in Which Gold Backs Up Paper Money