Any Item Can Function as a Medium of Exchange

question 32

Multiple Choice

Any item can function as a medium of exchange

• A)as long as the item is easily available
• B)as long as the item is generally accepted in trade for most goods and services and for repayment of debt
• C)but only if it is backed by some precious metal
• D)but only if the item has been issued by the Federal Reserve for use as a medium of exchange
• E)but only if the Treasury Department has designated that item as a medium of exchange

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Definitions:

Swap File

A file on a hard disk used as a temporary storage area for data that cannot be held in the main system memory.

Virtual Memory

A memory management capability of an operating system that uses hardware and software to allow a computer to compensate for physical memory shortages, temporarily transferring data from random access memory (RAM) to disk storage.

Hard Drive

A data storage device used in computers and some other digital systems to store and retrieve digital information using one or more rigid rapidly rotating disks coated with magnetic material.

Linux

An open-source operating system based on Unix that is popular for its stability, security, and use in server environments.