If a Society Chooses to Use Fiat Money, It

question 8

Multiple Choice

If a society chooses to use fiat money, it

• A) must guarantee the convertibility of its currency into gold.
• B) give its central bank independence.
• C) cannot make use of a banking system.
• D) must have a mechanism for regulating the quantity of money in the economy.

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Definitions:

Initiative Process

A procedure that allows citizens to propose and vote on legislation or constitutional amendments directly, bypassing the legislative body.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional or federal law.

Great Compromise

The agreement that large and small states reached during the Constitutional Convention of 1787 that in part defined the legislative structure and representation each state would have under the United States.

Three-Fifths Compromise

An agreement made during the 1787 Constitutional Convention stating that three-fifths of the enslaved population would be counted for determining taxation and representation in Congress.