In Which of the Following Ways Are a Fiat Money

question 47

Multiple Choice

In which of the following ways are a fiat money system and a commodity money system different?

• A) Commodity money is valuable because of the material of which it is made, and fiat money has value because people trust it.
• B) Fiat money is valuable because of the material of which it is made, and commodity money has value because people trust it.
• C) Commodity money is created by banks through a fractional reserve banking system, and this is not done with fiat money.
• D) Commodity money is accepted by the people of the country even though it is not official currency, and fiat money is declared by a government to be the official currency of the country.

---

Definitions:

Rent Control

A government policy that sets a maximum price (a rent ceiling) landlords can charge tenants, intended to make housing more affordable.

Landlords

Property owners who rent out real estate to tenants for a periodic payment, usually monthly.

Quality of Housing

A measure of the condition, facilities, and attributes of housing units, which affects the well-being and satisfaction of residents.

Tax

An obligatory fiscal contribution or another kind of tax levied on an individual by a government authority to support government budgets and various public spending.