In the first century and a half of the United States' existence, paper money was backed by precious metals. Today, the U.S. dollar is no longer backed by gold or silver. The dollar today is:
A) commodity money.
B) fiat money.
C) pseudo-commodity money.
D) unbacked money.

Question

Quizplus · Accepted Answer

The U.S. dollar today is fiat money, meaning it is not backed by a physical commodity like gold or silver but is instead backed by the government's declaration that it has value.

In the First Century and a Half of the United