If Most Individuals Accept Paper Currency in Transactions,and Paper Currency

question 93

Multiple Choice

If most individuals accept paper currency in transactions,and paper currency is convertible into gold,then banks can safely issue

• A)no more paper currency than the value of the gold they hold.
• B)more paper currency than the value of the gold they hold.
• C)as much paper currency as they please.
• D)paper currency equal to a fraction of the gold they hold.
• E)paper currency equal to the bank's commercial debt divided by their gold reserves.

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Definitions:

Diagonal Communication

The transmission of messages to higher or lower organizational levels in different departments.

Organizational Levels

The hierarchical layers within an organization, structured according to authority, responsibility, and communication flow.

Downward Communication

The transmission of messages from higher to lower levels in an organization.

Lower Level

Refers to a position or status that is considered to be of lesser importance or rank within a hierarchy or structure.