Money in a fiduciary monetary system is backed by
A)gold.
B)the public's confidence that the assets will continue to serve as money.
C)the intrinsic value of the materials used to make the assets that serve as money.
D)assets owned by the government that are intrinsically valuable.

Question

Quizplus · Accepted Answer

In a fiduciary monetary system, money is not backed by a physical commodity like gold, but instead by the public's confidence that the assets serving as money will continue to hold their value and be accepted as a means of exchange. This confidence is essential for the system to function properly.

Money in a Fiduciary Monetary System Is Backed by