Currently in the United States, money is backed by

Question

Quizplus · Accepted Answer

Money in the United States is currently backed by everyone's willingness to accept it. This is also known as fiat money, meaning that it has no intrinsic value and is not backed by a physical commodity like gold or silver. Instead, its value is determined by supply and demand in the economy and the faith that people have in the government and economy. Federal Reserve notes in banks are simply a form in which money is distributed, and while there may be some silver or gold in reserve, it does not directly back the value of the currency. Gold in Fort Knox and silver in the IMF vaults are also held as reserves but do not directly determine the value of the currency.

Currently in the United States, Money Is Backed by