Fiat Money

question 64

Multiple Choice

Fiat money

• A)is worthless.
• B)has no intrinsic value.
• C)may be used as a medium of exchange,but is not legal tender.
• D)refers to highly liquid assets that do not serve as a medium of exchange.

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Definitions:

Economic Theory

A structured explanation or framework about how economies function, including principles and models to understand economic behavior and markets.

Abstract Ideas

Concepts or notions that are not tangible or concrete, often involving complex thinking processes and creativity.

Real-World Situation

Circumstances or events that occur in the actual world, outside of controlled or theoretical environments.

Normative Statement

A statement that expresses a value judgment or opinion, not a fact, and suggests how things should be.