Asked by Matthew Payeff on Jun 03, 2024
Verified
Only Federal Reserve banks can issue paper currency in the United States,and their power to do so is virtually unlimited.
Federal Reserve Banks
The 12 regional banks that, along with the Board of Governors, make up the Federal Reserve System, serving as the central banking system of the United States.
Paper Currency
Money in the form of banknotes, issued by the government or central bank as legal tender.
Unlimited
Having no restrictions or boundaries in quantity or scope.
- Familiarize oneself with the core principles of banking systems and the workings of their operational activities.
- Become familiar with the role of money in facilitating transactions as a medium of exchange, preserving wealth as a store of value, and measuring economic value as a unit of account.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
True
Explanation :
The Federal Reserve banks have the authority to issue paper currency in the United States, and there is no limit to the amount of currency they can issue. However, they do so in accordance with monetary policy and economic conditions.
Learning Objectives
- Familiarize oneself with the core principles of banking systems and the workings of their operational activities.
- Become familiar with the role of money in facilitating transactions as a medium of exchange, preserving wealth as a store of value, and measuring economic value as a unit of account.