A fiduciary monetary system is
A) fully backed by gold.
B) dependent on barter for exchanges of goods and services.
C) one which cannot have any inflation.
D) dependent on the public's faith to accept the currency.

Question

Quizplus · Accepted Answer

A fiduciary monetary system is one where the value of the currency is based on the public's trust and confidence in the government or institution that issues it, rather than being backed by a physical commodity like gold. Therefore, its value is not guaranteed by a tangible asset and is based solely on the public's perception of its worth.

A Fiduciary Monetary System Is