What Is the Most Important Factor for Federal Reserve Currency

question 21

Multiple Choice

What is the most important factor for Federal Reserve currency to be accepted as money?

• A) its acceptance by businesses and households in the United States in exchange for goods and services
• B) its designation as legal tender by the federal government
• C) the willingness of the federal government to accept it in exchange for an equivalent amount of gold or silver coins
• D) the willingness of foreign businesses and banks to accept it in exchange for goods and services