166k views
0 votes
Why do most nations use flat money today?

. Governments are able to exert control over the value of flat money.
.Flat money is stable and will not lose value during economic downturns.
. Fiat money will maintain its value despite fluctuating exchange rates.
Governments know that flat money derives its value from gold and silver.

User Unnamed
by
7.3k points

1 Answer

6 votes

Final answer:

Most nations use flat money today because it offers advantages such as government control over its value and stability during economic downturns. Fiat money, the type of flat money used today, derives its value from trust and confidence in the government.


Step-by-step explanation:

Most nations use flat money today because it offers several advantages. First, governments can exert control over the value of flat money, allowing them to manage the economy more effectively. Second, flat money is stable and does not lose value during economic downturns, providing a reliable medium of exchange. Lastly, fiat money, which is the type of flat money used today, is not backed by gold or silver, but its value is based on the trust and confidence that people have in the government issuing it.


Learn more about Why nations use flat money today

User Mianjee
by
7.6k points