Which of the Following "Backs" the Value of Money in the United

question 109

Multiple Choice

Which of the following "backs" the value of money in the United States?

• A) the gold stored in the Federal Reserve Bank of New York
• B) the acceptability of it as a medium of exchange
• C) the willingness of foreign governments to hold U.S. dollars
• D) the size of the budget surplus in the U.S. government

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Definitions:

Punishment

The imposition of a penalty as a consequence of an undesirable action, aimed at reducing that behavior.

Negative Reinforcement

A process in behavioral psychology where a response increases because a negative condition is removed or avoided.

Secondary Reinforcer

A type of reinforcer which does not satisfy a basic biological need but has been learned to be valuable through association with primary reinforcers.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with a meaningful stimulus.