The reason we are willing to accept money with no intrinsic value is that
A)paper currency may be exchanged for full-bodied money.
B)the money supply is backed by an equal amount of gold and silver.
C)we have a fiduciary monetary system in which currency has both acceptability and predictability of value.
D)the value of the money varies directly with changes in the price level.

Question

Quizplus · Accepted Answer

A fiduciary monetary system is based on trust in the currency and the stability of its value. In this system, currency is not backed by gold or any other physical commodity, but rather its value is determined by the supply and demand for it in the economy. As long as people continue to accept the currency as a means of exchange and have confidence in its future value, it can continue to be used as money. This is why we are willing to accept money with no intrinsic value.

The Reason We Are Willing to Accept Money with No