Which is true of paper money in America in the early nineteenth century?

A) It could be issued only by the federal government.
B) It was in limited supply and used extensively only in the larger cities.
C) It represented a promise to pay the bearer, on demand, a specific amount of gold or silver.
D) Its value was determined by the president of the Second Bank of the United States.
E) Its value could not legally exceed the amount of money that the bank printing it held in its vault.

Question

Dwayne Rollins · Accepted Answer

Final Answer : C, Explanation :  Paper money in the early nineteenth century represented a promise to pay the bearer on demand a specific amount of gold or silver. This system was known as the gold standard or silver standard, depending on the type of metal backing the currency.

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