Which of the Following Statements Is True of Money

question 10

Multiple Choice

Which of the following statements is true of money?

• A) Paper money was invented around 1000 AD in China.
• B) Fiat money was used in the barter system of exchange.
• C) Paper money was the first form of money to be invented.
• D) One of the limitations of paper money is that it does not function as a store of value.

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Definitions:

Income Distribution

The way in which a nation’s total income is spread among its population.

United States

A country in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Recent Decades

A term referring to the relatively immediate past, often used to describe changes or trends over the last 20 to 30 years.

Economic Situation

Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in a marketer’s home country and abroad; see also inflation, foreign currency fluctuations, and interest rates.