Single Answer MCQ
Q-00045436
What defines the value of currency in modern economies?
1
The amount of gold it holds
2
The trust of the government backing it
3
Its rarity in circulation
4
The physical materials it is made from
Answer and Solution
Answer
B. The trust of the government backing it
Solution:
The value of currency in modern economies is defined by the trust and authority of the government that backs it, rather than intrinsic or physical worth.
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