_______ Is a Monetary System in Which the Money Has

question 89

Multiple Choice

_______ is a monetary system in which the money has no intrinsic value. In this system, the money is backed by the government.

• A) Fiat money
• B) The gold standard
• C) Commodity money
• D) The barter system

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Definitions:

Trade Balance

The difference in value between a country's imports and exports over a given period.

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting how much of one currency can be exchanged for another.

Real Interest Rates

The yield that an investor, saver, or lender anticipates or earns, adjusted for the effects of inflation.

U.K. Bonds

Debt securities issued by the United Kingdom government, serving as a way for the government to borrow money from investors.