Which of the following statements about paper money in Canada is most accurate?

Question

Quizplus · Accepted Answer

Paper money in Canada, like most modern currencies around the world, is fiat money that is not backed by a commodity such as gold or silver. Instead, it is declared legal tender by the government and its value is based on general faith in the economy and the stability of the issuing institution, the Bank of Canada. None of the other options are accurate, as paper money makes up less than half of M2 in Canada, is not convertible into specie, and is not backed by gold or silver.

Which of the Following Statements About Paper Money in Canada