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

Social Studies

Byron Snow

1 December, 04:28

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."

+1

Answers (1)

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Arturo Rivas · 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."