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Palabra Posted 8 years ago
Grammar

This money is not covered /based

I can't understand what is "not covered" here?

and also "based"? what foes it mean it's based? it feels like something is missing here.. but that is the text lol

thanks for your help

Until the mid 20th century, all episodes with private money were replaced by money issued by the monopolist. This money is not covered in any goods or metal and is based only on trust in the monopoly
  

Top answer

". It means that the money is not backed by tangible assets; for example, the bank does not have gold to the value of all the money that it has issued. "...

— GPY

  • ".
  • It means that the money is not backed by tangible assets; for example, the bank does not have gold to the value of all the money that it has issued.
  • "...
  • is based only on trust in the monopoly" means that the money is viable only because people trust the bank or institution that issues it.
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1 Answers
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It apparently should read "This money is not covered by any goods or metal ...". It means that the money is not backed by tangible assets; for example, the bank does not have gold to the value of all the money that it has issued.

"... is based only on trust in the monopoly" means that the money is viable only because people trust the bank or institution that issues it.

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