Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false ?

• A) Round stones with holes in the center can serve as money.
• B) Money eases the process of exchanging goods and services in a modern economy.
• C) Money serves as a measure of value only when it is backed by gold or silver.
• D) Money is used as a measure of the relative value of goods and services in an economy.

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Definitions:

Medicare Tax

The amount of Medicare tax an employee pays is a set percentage of the entire income with no maximum amounts; the amount paid is split between the employee and employer.

FICA Taxes

Taxes funded by both employers and employees to finance Social Security and Medicare benefits, based on earned income.

Term Life Insurance

A type of life insurance policy that provides coverage for a specified period ('term'), offering a death benefit if the insurer dies during that term.

Premium

The amount paid for an insurance policy, often on a monthly, quarterly, or annual basis.