A. the issue of notes backed entirely by gold
B. a country’s currency that is not negotiable
C. the issue of notes not backed by gold
D. a country’s currency officially issued
Correct Answer:
Option C – the issue of notes not backed by gold
Explanation
The fiduciary issue is that portion of a note issued by the government that is not matched by government holdings of gold or other securities or that part of a note that lacks the backing of metal or coin or assets capable of being converted into coin.
