The main difference between paper money and coins as forms of money is that
A) the metallic content of coins makes them more acceptable as money.
B) paper money issued by the Federal Reserve Board is backed by gold while coins are not.
C) paper money serves as a unit of account while coins do not.
D) the metal in coins is more durable than paper.

Question

Quizplus · Accepted Answer

The main difference between paper money and coins as forms of money is that the metal in coins is more durable than paper. This durability means that coins can last longer and be used for a longer period of time, which makes them more acceptable as a form of money. While paper money issued by the Federal Reserve Board is backed by the government, it is not backed by gold. Paper money and coins both serve as units of account in the economy.

The Main Difference Between Paper Money and Coins as Forms