The money supply is backed: Group of answer choices by the government's ability to control the supply of money and therefore to keep its value relatively stable. dollar-for-dollar with gold and silver. by government bonds. dollar-for-dollar with gold bullion.

The answer is A. Back by the government's ability to control the supply of money and therefore to keep its value relatively stable

Explanation:

The money supply is also the quantity of money in circulation. Government through central banks regulate the money supply through its monetary tools.

The monetary tools government can use to control the supply of money are:

1. Open-market operation

2. Discount (interest rate)

3. Reserve requirement.

Controlling the money supply helps to keep the value of money stable and to prevent the economy from going into recession.

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