Which of the following statements is most correct?
A) Both gold and silver have now been completely removed from any monetary role in the U.S. economy.
B) Savings deposits and small time deposits at depository institutions constitute part of the M1 money supply definition.
C) Fiat money is gold coins issued by central banks under authority of the government.
D) The monetary system of the United States today is based on a dollar standard, and the dollar can be converted into gold.

Question

Quizplus · Accepted Answer

Gold and silver are no longer used in any official monetary capacity in the U.S. economy. The other options are incorrect: B) Savings and small time deposits are part of M2, not M1; C) Fiat money is currency without intrinsic value, not gold coins; D) The U.S. left the gold standard, so dollars cannot be converted into gold by the government.

Which of the Following Statements Is Most Correct