Multiple Select Question

Question

Select all that apply

Which of the following are benefits of the government's decision to not back currency?
Multiple select question.

The ability to provide as much or as little money as needed to best suit the economic needs of the country

The ability to provide as much or as little money as needed to maintain the value of gold

The ability to provide as much or as little money as needed to maintain the value of money

The ability to provide as much or as little money as the availability of gold permits

Answer 1

The benefits of the government's decision to not back currency typically include:

• The ability to provide as much or as little money as needed to best suit the economic needs of the country.

• The ability to provide as much or as little money as needed to maintain the value of money.

The other options, particularly those related to gold, are not benefits of a currency not backed by gold, as a currency not tied to gold is more flexible and does not need to maintain a relationship with gold reserves.