Fiat Money

question 7

Multiple Choice

Fiat money

• A)has no or very little value except as money.
• B)is rarely used in modern economies.
• C)functions well only if can be redeemed for gold or other precious metals.
• D)serves well as a medium of exchange,but not as a store of value.

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Definitions:

Equilibrium Price

A pricing point in the market where the volume of goods on offer is equal to the volume of goods sought after.

Shortage of Strawberries

A situation where the demand for strawberries exceeds the supply available in the market, often leading to increased prices and unmet consumer demand.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar enough to be considered substitutes.

Shortage

A market condition where the demand for a product exceeds the supply of that product, often leading to higher prices.