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Notes whose value rests on gold or another commodity kept at a bank are described as:
ACounter signed
BCompany issued
CCash equivalent
DCommodity backed
Answer & Solution
Correct answer: D. Commodity backed
1. A reserve stands behind the note.
2. Gold or silver is the usual backing.
3. They are commodity-backed.
_Source: OpenStax Principles of Economics 3e, Chapter 27, Money and Banking._
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