Asked by Chevelle Rhule on Jul 02, 2024
Verified
If you returned a $5 Federal Reserve note to the Fed,you could receive:
A) $5 in silver.
B) $5 in gold.
C) 5 one-dollar bills.
D) 10 one-dollar bills.
E) a small gold bar.
Federal Reserve Note
The official paper currency of the United States, issued by the Federal Reserve, and the most common form of U.S. banknotes in circulation.
- Comprehend the essence and role of fiat currency, particularly in relation to Federal Reserve notes.
Verified Answer
JG
Jillian Garza8 days ago
Final Answer :
C
Explanation :
The Fed does not exchange currency for gold or silver. They only issue and exchange Federal Reserve Notes, which are backed by the full faith and credit of the US government. Therefore, the best choice would be to receive five one-dollar bills in exchange for the $5 Federal Reserve Note.
Learning Objectives
- Comprehend the essence and role of fiat currency, particularly in relation to Federal Reserve notes.