Currently, the Backing for Federal Reserve's Notes Is Primarily in the Form

question 69

Multiple Choice

Currently, the backing for Federal Reserve's notes is primarily in the form of

• A) gold certificates.
• B) gold bullion.
• C) eligible paper (business notes and drafts).
• D) the credit of the Federal Reserve.

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Definitions:

Mid-ocean Ridges

Underwater mountain ranges formed by plate tectonics, where new oceanic crust is created through volcanic activity along divergent plate boundaries.

Ocean Plates

Large pieces of the Earth's crust that move over the partially molten outer layer, specifically those under the oceans.

Diverge

To move or extend in different directions from a common point, often used in reference to plate tectonics or paths.

Subducted Plate

A tectonic plate that is being forced downward into the mantle beneath another plate at a convergent boundary.