Question 8 of 10
In 1971, the U.S. dollar became part of a total fiat system, meaning what?
OA. It could no longer be divided into equivalent units.
OB. It could no longer be used as a medium of exchange.
OC. It could no longer serve as a storehouse of value.
could no longer be converted into gol



Answer :

Final answer:

Fiat money is government-declared legal tender not backed by commodities like gold. The U.S. dollar became part of a total fiat system in 1971 under Nixon, no longer tied to gold, signaling the shift to a true fiat money system.


Explanation:

Fiat money is government-declared legal tender that is not backed up by any commodity, such as gold or silver. In 1971, the U.S. dollar became part of a total fiat system when President Nixon officially severed its ties to gold, marking the end of the Bretton Woods system and the gold exchange standard. As a result, the U.S. dollar became a true fiat money, backed only by faith and trust in its value.


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