Question

Why is fiat currency more vulnerable to dramatic economic shifts than currency on the gold standard?
(1 point)
Fiat currency is generally used in countries with weak economies.
Fiat currency is backed by silver, which is less valuable than gold.
Fiat currency is backed by the government, so it is not as stable as gold.
Fiat currency includes government bonds and the gold standard does not.
A)
What factors make a country’s currency stable?
(1 point)
the country it is from is not having a war
the type of paper products used to make it
the popularity of the nations as a travel destination
the overall economic situation and a solid government

Answer 1

1) Fiat currency is backed by the government, so it is not as stable as gold.

2) The overall economic situation and a solid government.