Deposit money is backed by:

Question

Quizplus · Accepted Answer

Deposit money is backed by the creditworthiness of the depository institution. This means that the institutions that are accepting deposits are responsible for ensuring that the money is safe and can be returned to the depositors when they need it. This is usually backed by regulatory bodies and deposit insurance programs to maintain the stability and credibility of the banking system. Gold and silver used to back the currency in the past, but currently, most currencies are backed by the creditworthiness of their issuers.

Deposit Money Is Backed By