If a Piece of Currency Must Be Accepted for Payment

question 81

Multiple Choice

If a piece of currency must be accepted for payment because the government says so,the currency is called

• A) commodity money
• B) money backed by gold
• C) high-powered money
• D) greenbacks
• E) fiat money

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Definitions:

Abstract Thought

Abstract thought is the ability to think about objects, principles, and ideas that are not physically present, involving complex processes such as problem-solving and theorizing.

Centration

A cognitive limitation in early childhood, where a child focuses only on one aspect of a situation and ignores other relevant aspects.

Animism

The belief that objects, places, and creatures all possess a distinct spiritual essence or soul.

Concrete Operational Stage

A developmental phase in children, identified by Jean Piaget, typically occurring between ages 7 and 12, where children begin to think logically about concrete events.