Economics · Monetary Economics
Under which system is the central bank authorized by law to issue a fixed amount of notes against government securities, while any excess issue must be fully backed by gold or silver?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Proportional reserve system
- 2Fixed fiduciary system✓
- 3Minimum reserve system
- 4Maximum fiduciary system
Correct answer
Fixed fiduciary system
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