U.S.currency is not currently convertible into gold.What does this mean?
A) It is impossible/illegal to buy gold with U.S. currency.
B) The government is not obliged to exchange U.S. currency for gold.
C) The price of gold in U.S. currency does not change from day to day.
D) The price of gold in U.S. currency fluctuates from day to day.

Question

Quizplus · Accepted Answer

The statement means that the government is not obligated to exchange U.S. currency for gold. In the past, the U.S. dollar was backed by gold, and people could exchange their paper currency for gold. However, this is no longer the case as the government shifted away from the gold standard in the 1930s and completely ended it in 1971. Therefore, U.S. currency is no longer convertible into gold.

USCurrency Is Not Currently Convertible into Gold