Fiat Money

question 58

Multiple Choice

Fiat money

• A) has a high intrinsic value.
• B) is decreed by royalty.
• C) is acceptable as money because the government has decreed it to be so.
• D) is unacceptable as money.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage or debt proportion.

Dividend Payout Ratio

The proportion of net income a firm pays out to its shareholders in the form of dividends.

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.