The Major Problem of a Currency That Is Fractionally Backed

question 87

Multiple Choice

The major problem of a currency that is fractionally backed and convertible into a precious metal is that of

• A)clipping,which debases the metal coins.
• B)counterfeiting.
• C)maintaining its convertability into the metal.
• D)paper money being less durable than gold.
• E)perennial shortages of paper currency.

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