Why does the US have so much gold in reserve compared to any other country?
In: Economics
Up until very recently, gold was very important financially during war time. Even though it’s not as relevant now, the US has built up a lot of gold over time from being in war so much.
Money used to be based on the value of gold and gold could be used by banks to pay depositors, trade paper money, and support the value of paper money.
Nowadays war doesn’t depend on gold so much and money’s value is not based on gold, so the gold reserve is an artifact of the nation’s history.
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