Question

Federal Reserve notes are examples of A. fiat money. B. representative money. C. commodity money. D. checkable deposits.

Answer 1

Answer: Fiat money

Explanation:

The paper money that is used in the United States is the Federal Reserve Notes. It should be noted that the Federal Reserve Note is an example of a fist money.

Fiat money refers to a government-issued currency and it should be noted that this isn't backed by a commodity. Through fiat money, the central bank can control the economy. Majority of modern paper currencies, are fiat money. e.g dollar, pounds etc.