A system in which the value of currency issued by the government is based entirely on public faith that the currency will be acceptable in trade is
A) a fiduciary system.
B) a private property system.
C) a Gresham system.
D) a socialistic system.

Question

Quizplus · Accepted Answer

A fiduciary system is one in which the value of the currency is based on public trust or confidence in the government that issued it, rather than on a fixed standard, such as gold or silver. This is the system used by most modern economies today.

A System in Which the Value of Currency Issued by the Government