Asked by Ariana Rinehart on Jul 15, 2024
Verified
Federal Reserve Notes are
A) the currency part of the United States money supply.
B) United States government securities owned by the Fed.
C) the backing for all bank account balances.
D) used exclusively by the government to pay off its debt.
Federal Reserve Notes
Paper money issued by the Federal Reserve, the central banking system of the United States, used as the country's standard currency.
Money Supply
The comprehensive amount of money assets in an economy at a specific point in time.
United States
A country in North America consisting of 50 states, known for its significant global economic and cultural impact.
- Understand the impact of Federal Reserve policies on the banking system and the overall economy, including the money supply, interest rates, and inflation.
Verified Answer
MS
Madhulika SanyalJul 15, 2024
Final Answer :
A
Explanation :
Federal Reserve Notes are physical currency issued by the Federal Reserve and are a part of the United States money supply. They are typically used in daily transactions and are backed by the faith and credit of the United States government.
B, C, and D are incorrect because Federal Reserve Notes are not government securities, are not the backing for bank accounts, and are not exclusively used by the government to pay off its debt.
B, C, and D are incorrect because Federal Reserve Notes are not government securities, are not the backing for bank accounts, and are not exclusively used by the government to pay off its debt.
Learning Objectives
- Understand the impact of Federal Reserve policies on the banking system and the overall economy, including the money supply, interest rates, and inflation.