Question

The money supply is backed Multiple Choice by the government's ability to control the supply of money and therefore to keep its value relatively stable. by government bonds. dollar-for-dollar by gold and silver. by gold reserves representing a fraction of the total value of dollars in circulation.

Answer 1

Answer:

by the government's ability to control the supply of money and therefore to keep its value relatively stable.

Explanation:

The gold standard monetary system refers to a system where paper money can be converted into a certain amount of gold. It was used by the federal reserve until 1971, when it changed for the current monetary system.

The monetary system was never based on bonds, since bonds represent money that the government owes to private or public investors.