What Is the Most Important Factor for Federal Reserve Currency

question 86

Multiple Choice

What is the most important factor for Federal Reserve currency to be accepted as money?

• A)Its acceptance by businesses and households in the United States in exchange for goods and services
• B)Its designation as legal tender by the federal government
• C)The willingness of the federal government to accept it in exchange for an equivalent amount of gold or silver coins
• D)The willingness of foreign businesses and banks to accept it in exchange for goods and services

---

Definitions:

Bystander-Calculus Model

The Bystander-Calculus Model posits that individuals go through a cost-benefit analysis before deciding whether to help in an emergency, weighing the potential risks and rewards.

Cognitive Processes

Mental activities involved in acquiring knowledge and understanding, including thinking, knowing, remembering, and problem-solving.

Physiological Processes

The functions and activities of living organisms and their parts, including all physical and chemical processes.

Bystander-Calculus Model

A psychological model explaining factors that influence an individual's decision to help or not help in an emergency situation, considering personal costs and benefits.