The two most common types of money in circulation in Canada today consist of
A)transaction deposits at banks and commodity money.
B)fiat money and transaction deposits at banks.
C)commodity-backed paper currency and fiat money.
D)private bank notes and commodity money.
E)private bank notes and commodity-backed paper currency.

Question

Quizplus · Accepted Answer

The two most common types of money in circulation in Canada today are fiat money (which has no intrinsic value and is declared legal tender by a government) and transaction deposits at banks (which are created when a bank extends credit to a customer). These two types of money make up the majority of the money supply in Canada.

The Two Most Common Types of Money in Circulation in Canada