Why Was China's Demand for Silver So High During the Sixteenth

question 32

Multiple Choice

Why was China's demand for silver so high during the sixteenth and seventeenth centuries?

• A) Silver was believed to be the most beautiful metal.
• B) Silver was used to pay taxes and as money in internal markets.
• C) Silver was used in decorating porcelains for export.
• D) Silver was thought to have medical value.

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Definitions:

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profits and assets.

Company

An organization engaged in commercial, industrial, or professional activities, either for profit or not-for-profit.

Preferred Stock

A category of corporate share that ranks above common stock in terms of asset and income claims, typically associated with predetermined dividend payments.

Par Value

The nominal value of a bond, stock, or coupon as stated in the financial instrument.