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Macroeconomics

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U.S. Money after 1914

MACRO-H12WLU

The Federal Reserve Act of 1913, in addition to creating the Federal Reserve System, made it illegal for banks to issue private banknotes as they had done previously. As a result, banks shifted to the creation of negotiable draft accounts that could be issued in any amount by the account holder. This is an example of what kind of money?

A

Commodity money.

B

Convertible paper money.

C

Fiat money.

D

Checkable deposit money.