ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve Notes are the sole currency in circulation today. The term greenbacks are still used today to mention Federal Reserve notes or U.S. dollars. The Greenback dollar indicating the modern-day dollar is widely accepted for all kinds of international transactions.

Detailed explanation-2: -A greenback is a slang term for U.S. paper dollars. The term originated during the mid-1860s, when these notes were printed in green ink.

Detailed explanation-3: -Greenbacks-named for their distinctive color-were the first national currency of the United States. The notes, though not redeemable for gold or silver, were lawful money backed by the credit of the federal government.

Detailed explanation-4: -To pay for the war, the Legal Tender Act of 1862 provided for the printing of paper money not directly linked to gold. These paper bills were called greenbacks, because a green dye was used in the printing process.

Detailed explanation-5: -Greenbacks were emergency paper currency issued by the United States during the American Civil War that were printed in green on the back. They were in two forms: Demand Notes, issued in 1861–1862, and United States Notes, issued in 1862–1865.