When an economy is on a paper monetary standard, its money is backed by:

Question

Quizplus · Accepted Answer

When an economy is on a paper monetary standard, the value of its money is not backed by a physical commodity but rather by the strength of the economy and the trust and faith people have in the government's ability to maintain the currency's value. This trust ensures that the currency will be accepted in transactions and retain its purchasing power over time.

When an Economy Is on a Paper Monetary Standard, Its