Which of the Following Statements Is False

question 140

Multiple Choice

Which of the following statements is false?

• A) Legal tender is money backed only by government credit.
• B) Fiat money is backed by government decree.
• C) Coins are not legal tender.
• D) Federal Reserve notes are legal tender.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period, which can appear on the income statement as a result of loans, bonds, or credit lines.

Semiannually

Pertains to an event or process that occurs twice a year.

Maturity

The date on which a financial instrument (such as a bond) or an investment becomes due for payment or is fully repaid.

Contract Rate

The interest rate stipulated in a contract or agreement, often related to loans, bonds, or other financial instruments.