Is the following statement correct?

"The Federal Reserve is limited in its ability to issue paper currency by the amount of gold the federal government has in Fort Knox. To issue more paper currency, the government first has to buy more gold."

Question

Elle

Social Studies

18 February, 23:01

Is the following statement correct?

"The Federal Reserve is limited in its ability to issue paper currency by the amount of gold the federal government has in Fort Knox. To issue more paper currency, the government first has to buy more gold."

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Answers (1)

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Dawson Moss · Answer 1

False

In our world today the usage of currency is fiat money and not supported by gold

Explanation:

Is the following statement correct?

"The Federal Reserve is limited in its ability to issue paper currency by the amount of gold the federal government has in Fort Knox. To issue more paper currency, the government first has to buy more gold."

False

In our world today the usage of currency is fiat money and not supported by gold

Is the following statement correct? "The Federal Reserve is limited in its ability to issue paper currency by the amount of gold the federal government has in Fort Knox. To issue more paper currency, the government first has to buy more gold."

Is the following statement correct?

"The Federal Reserve is limited in its ability to issue paper currency by the amount of gold the federal government has in Fort Knox. To issue more paper currency, the government first has to buy more gold."