Currently, the Backing for Federal Reserves Notes Is Primarily in the Form

question 21

Multiple Choice

Currently, the backing for Federal Reserves notes is primarily in the form of:

• A)gold certificates
• B)gold bullion
• C)eligible paper (business notes and drafts)
• D)none of the above

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Definitions:

Movement Along

Describes the change in quantity demanded or supplied of a good in response to a change in price, as shown on a graph.

Demand Curve

Graphical representation showing how the quantity demanded of a commodity varies with changes in its price.

Inferior Good

A type of good for which demand decreases when consumer income rises, unlike normal goods where demand increases with rising income.

Chili Peppers

Fruit of plants from the genus Capsicum, used worldwide as a spice or vegetable, known for their hot and spicy flavor.