The two most common types of money in circulation in the United States today consist of Question 11Answer a. commodity-backed paper currency and fiat money. b. private bank notes and commodity-backed paper currency. c. fiat money and transaction deposits at banks. d. transaction deposits at banks and commodity money.
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- Commodity-backed paper currency: Money that is backed by a physical commodity like gold or silver. - Fiat money: Money that is declared by a government to be legal tender, not backed by a physical commodity. - Private bank notes: Notes issued by private banks, Show more…
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