Q. Which among the following was the first note known as “Greenback” issued in United States?
Answer: Demand Note
Notes: The first notes known as “greenbacks” in the United States were called demand notes. They were used to pay government salaries and expenses in 1861-2. The Legal Tender Act of 1862 authorized the paper notes that would become the official currency. These notes were called “greenbacks” because the backs were printed in green. The term “greenback” was a pejorative term used to express contempt or disapproval of the notes. The government backed the currency, but they were not exchangeable for gold or silver. Greenbacks could be used to pay taxes and purchase bonds. The first greenbacks were issued between March of 1862 and March of 1863. They came in denominations of $1, $2, $5, $10, $20, $50, $100, $500, and $1,000.
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