Paper money is always fully backed by a precious metal; although, it does not have to be gold or silver.

Question

Quizplus · Accepted Answer

This statement is false. Paper money is not always fully backed by a precious metal. In fact, most modern currencies are fiat currencies, meaning they are not backed by any physical commodity such as gold or silver. The value of fiat currencies is based on the trust and stability of the government or central bank that issues them.

Paper Money Is Always Fully Backed by a Precious Metal;