Which of the Following Is NOT a Characteristic of Fiat

question 136

Multiple Choice

Which of the following is NOT a characteristic of fiat money?

• A) generally acceptable as a medium of exchange
• B) provides a way to store wealth over time
• C) serves as a unit of account
• D) changes in value over time as the amount of fiat money changes
• E) always backed by something of high intrinsic value

---

Definitions:

Debt

Money that is owed or due to another individual or entity, often involving agreed repayment terms and interest.

Supernormal Dividend

Dividends that are higher than the level that can be sustained by the long-term growth rate of the company.

Common Stock

Equity ownership in a corporation, with voting rights and potentially variable dividends.

Sinking Fund Provisions

A requirement that a borrower regularly set aside funds to repay a debt before or at maturity, often used in conjunction with bonds.