Question
1. (1) When colonists first arrived in America, they used the commodity system of money. (2) Precious metals, especially gold and silver, could be used in stores and traded for goods. (3) Other commodities, such as tobacco or furs, could also be used as currency. (4) Then, in 1785, the United States began using the representative system of money. (5) Instead of carrying around heavy metals, people began using paper money that was printed by the government. (6) Each paper dollar was representative of its value in gold, and a person could exchange this money for gold at any bank. (7) In 1968, the United States moved to the fiat system of currency that is used today. (8) Paper money is not backed by gold and cannot be exchanged for such at a bank. (9) The dollar now has value only because people have faith in the currency system.
The implied main idea is that