Safe Luxury

Paper currency and coins in circulation are backed by gold stored in government vaults?

true false

Public Comments

1. In the US, false.
2. False. In the US, that hasn't been the case for 70 years, when FDR dropped the gold standard in 1933. No country uses the gold standard any more.
3. False There is no direct connection between gold stored and currency value, not anymore. Here is a excerpt from an article from Investopedia.com "The banks generate their own income from four main sources: •Services provided to banks •Interest earned on government securities acquired while carrying out the work of the Federal Reserve •Income from foreign currency held •Interest on loans to depository institutions The income gathered from these activities is used to finance day to day operations, including information gathering and economic research. Any excess income is funneled back into the U.S. Treasury." Regards EstaniChapel - estanichapel.com