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:

Population Proportion

The fraction or percentage of members in a population that possess a particular attribute or characteristic.

Expected Value

The long-run average value of repetitions of an experiment or random process, representing the central tendency.

CFO's Salary

The compensation awarded to the Chief Financial Officer of a company, consisting of base salary, bonuses, and other financial benefits.

Sample Mean Difference

The calculated difference between the mean values of two samples drawn from the same or different populations.