Examlex
According to Robert Sternberg, which of the following statements is True?
Commodity Money
Currency that possesses inherent worth and serves functions beyond simply facilitating trade, like gold or silver.
Monetary Policy
The process by which a central bank controls the supply of money in an economy, primarily through interest rates, to maintain price stability and achieve high employment.
100-Percent-Reserve Banking
A banking system where banks are required to keep the full amount of each depositor's funds in reserve, meaning they cannot lend out any of the money deposited.
Fractional Reserve Economy
An economic system where banks hold a portion of customers' deposits in reserve and lend out the remainder, thus creating money.
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