Question

The value of money in the United States is based on, and backed by the stocks of precious metals held by the United States government. T/F?

Answer 1

This is true that the US dollar is backed by gold, and the rest by false goodwill and promises. It is the only country who's currency is backed by precious metals. The U.S. dollar is generally fiat money, like many major world currencies. Its value is underpinned by physical good like gold and silver, also known as commodity money.
United States, used gold standard for 19th as well as early 20th century. The most late of all the countries. Back in the time, the value of coins were based on value of metal being used in it, and the nation which had more of gold used to be more wealthy. U.S.A. has the most gold in the world. The fact that the country owns the most gold in the world, is the major reason that the currency is backed by gold, and the value of precious metals like gold and silver.