Examples of How a System Based on Monetary Policy Works

question 52

Multiple Choice

Examples of how a system based on monetary policy works are

• A) money must be widely accepted, so people can buy from other people with money.
• B) money must only be acceptable in limited markets in order to increase its value.
• C) money must act as a standard of deferred payment, therefore managing to maintain its purchasing power at a later time.
• D) money must be fluid enough to be bartered and not hold its value for deferred payments.
• E) both A and C.

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