Answer: Increase in importance.

When an economy adopts a fiat currency system, the central bank's role becomes more critical. Unlike a gold standard, where the money supply is constrained by gold reserves, a fiat system allows the central bank to expand the money supply indefinitely if desired. Central banks are thus pivotal in maintaining the value of the currency and ensuring public confidence in it. This underscores their heightened importance in modern economies.

Author: LeetQuiz Editorial Team