Paper money backed by a precious metal is called
A) full-bodied money
B) a bimetallic standard
C) representative full-bodied money
D) reserve money

Question

Quizplus · Accepted Answer

Representative full-bodied money is paper money that is backed by a precious metal, usually gold or silver. It represents an equivalent amount of the metal on deposit and can be redeemed for the metal upon demand. Full-bodied money refers to coins made of precious metals, while reserve money is any type of currency that is held by a central bank or monetary authority as a reserve to cover liabilities. A bimetallic standard refers to a monetary system where the value of the currency is based on two metals, such as gold and silver.

Paper Money Backed by a Precious Metal Is Called