The Major Problem of a Currency That Is Fractionally Backed

question 8

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)maintaining its convertability into the metal.
• C)perennial shortages of paper currency.
• D)paper money being less durable than gold.
• E)counterfeiting.

---

Definitions:

Research Method

Various techniques and strategies used by scientists to gather and analyze data in order to investigate specific questions or hypotheses.

Independent Variables

In research, the variable that is manipulated or changed by the researcher to observe how it affects the dependent variable.

Dependent Variables

In experimental research, the variable that is tested and measured, expected to change when the independent variable is altered.

Experimental Method

A research method involving the manipulation of variables to determine cause and effect relationships.