Paper money backed by a precious metal is called:

Question

Quizplus · Accepted Answer

Representative full-bodied money is paper currency that is backed by a precious metal such as gold or silver. This means that the paper money can be exchanged for the actual precious metal, making it representative of its value. Full-bodied money refers to currency that has a value equal to the value of the precious metal that backs it. Therefore, C is the correct answer. A refers to currency that is backed by its own face value (e.g. a $20 bill is worth $20), while B refers to a currency system that uses two metals, and D is an incorrect statement.

Paper Money Backed by a Precious Metal Is Called