ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the USA currency’s money value source based on?
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FED
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FOMC
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Fiat Money
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Monetary Policy
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Explanation:
Detailed explanation-1: -The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.
Detailed explanation-2: -The U.S. dollar is backed by the full faith in and credit of the U.S. government.
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