Is United States currency officially backed today?
Answers
Answer:
Officially currency of United States is not backed today.
Explanation:
Legal currency is backed by support of foreign investor and by government acceptance, but there is no official backing of US currency. Fiat money is our currency, regulated by the government via Federal Reserve. Legal notes are backed by gold or silver to gain their value. Fiat money is based on the faith and trust in our economic system that maintains the value of tender.
Answer:
The legal currency is currently backed by "government acceptance".
Explanation:
The United States currency is the "US dollar", which had been officially in use since 1972. The Federal Reserve Notes is the "circulating paper money" that has been denominated in the United States dollars, although the U.S. Constitution provides the Congress with power “To coin money”. Often referred to as the greenback by the forex dealers and the financial sectors of countries like South Africa, New Zealand, India, etc., the value of U.S. dollar is taken as the benchmark to determine the inflation or deflation of economy.