Federal Reserve notes are _____.
A)checks
B)commodity money
C)coins
D)backed by gold
E)fiat money

Name: Federal Reserve notes are _____. A)checks B)commodity money C)coins D)backed by gold E)fiat money
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Question

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Federal Reserve notes are not backed by a commodity such as gold or silver, but rather are considered fiat money because their value is based on the government's declaration that they are legal tender and will be accepted as payment for debts.

Federal Reserve Notes Are _____