Which of the Following Is Not Correct About the Money

question 56

Multiple Choice

Which of the following is not correct about the money kept in transactions accounts?

• A)It permits direct payment to a third party.
• B)It is backed by gold held by the government.
• C)It is part of the basic money supply.
• D)It is a good substitute for cash in many cases.

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Definitions:

Normal Rate

Typically refers to an average or commonly occurring value within a specific context, such as an interest rate or growth rate.

Marginal Cost

The increase or decrease in the total cost that arises when the quantity produced is incremented by one unit.

Fixed Factor

A resource or input whose quantity cannot easily be changed in the short run.

Diminishing Returns

A principle stating that if one factor of production is increased while others are held constant, the output per unit of the variable factor will eventually decrease.