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:

Pension Trustee

An individual or organization that holds and manages the assets of a pension fund on behalf of its beneficiaries.

Pension Plan

A retirement plan offered by an employer, providing financial benefits to employees upon retirement.

Journal Entries

Recorded transactions in the accounting records of a business, showing the financial effects of business transactions.

Settlement Rate

The agreed-upon rate used to calculate the exchange of payments between counterparties in financial transactions, such as in derivatives or loans.