What determines the acceptability of dollar bills as a medium of exchange?
A)Our society's willingness to use green paper notes issued by the Federal Reserve as money
B)The willingness of the Federal Reserve to redeem dollar bills for gold
C)The willingness of the U.S. Treasury to redeem dollar bills for gold
D)The public's fear that failing to accept dollar bills will trigger a hyperinflation

Question

Quizplus · Accepted Answer

The acceptability of dollar bills as a medium of exchange is determined by our society's willingness to use green paper notes issued by the Federal Reserve as money. Essentially, people need to trust and believe in the value of the currency in order for it to be accepted and used as a form of payment. This trust is cultivated through the stability of the economy, government policies, and the overall perception of the U.S. dollar as a reliable and valuable currency.

What Determines the Acceptability of Dollar Bills as a Medium