143k views
3 votes
Federal Reserve notes are examples of A. fiat money. B. representative money. C. commodity money. D. checkable deposits.

1 Answer

4 votes

Answer: Fiat money

Step-by-step explanation:

The paper money that is used in the United States is the Federal Reserve Notes. It should be noted that the Federal Reserve Note is an example of a fist money.

Fiat money refers to a government-issued currency and it should be noted that this isn't backed by a commodity. Through fiat money, the central bank can control the economy. Majority of modern paper currencies, are fiat money. e.g dollar, pounds etc.

User Sunghun
by
7.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.