Why is the gold standard used around the world in connection to paper money? (1 point) Responses It can be broken down into smaller amounts, which is useful when making smaller purchases. It can be broken down into smaller amounts, which is useful when making smaller purchases. There is a limited supply as only a certain amount is printed every year. There is a limited supply as only a certain amount is printed every year. It is recognizable, as paper money has a set value that people understand, and despite different currencies there is a set exchange rate. It is recognizable, as paper money has a set value that people understand, and despite different currencies there is a set exchange rate. It is very durable as it cannot be destroyed easily.

Answer 1

The correct response is: It is recognizable, as paper money has a set value that people understand, and despite different currencies there is a set exchange rate.

This highlights the importance of trust and understanding in the value of money, which is crucial for economic transactions.