Question

Why is fiat currency more vulnerable to dramatic economic shifts than currency on the gold standard? (1 point) Responses

A. Fiat currency is generally used in countries with weak economies.
B. Fiat currency is backed by silver, which is less valuable than gold.
C. Fiat currency is backed by the government, so it is not as stable as gold.
D. Fiat currency includes government bonds and the gold standard does not.

Answer 1

[AI-generated answer — Bot GPT 3.5]

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