When Deciding What to Use as Money, One Characteristic to Look

question 56

Multiple Choice

When deciding what to use as money, one characteristic to look for is its:

• A) convenience.
• B) exchange value.
• C) intrinsic value.
• D) physical shape.

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Definitions:

Passive Approach

A strategy or policy of non-intervention, allowing market forces to operate with minimal governmental interference.

Economic Policy

Actions taken by governments or central banks to influence the economy, including decisions on monetary policy, fiscal policy, and regulatory measures.

Recession

A sharp drop in the overall economic activities, enduring more than a couple of months, commonly reflected in key metrics including real GDP, real income, job numbers, output of the industrial sector, and transactions in the wholesale and retail markets.

Recessionary Gap

A situation where actual economic output is lower than the potential output, indicating underutilized resources and unemployment.