Which of the Following Is One Problem with Fiat Money

question 75

Multiple Choice

Which of the following is one problem with fiat money, as compared to commodity money?  

• A) More resources are used to create fiat money than to create commodity money. 
• B) Frequently too little fiat money is available relative to commodity money. 
• C) The potential for inflation is greater with fiat money than with commodity money. 
• D) Fiat money is less divisible than commodity money.

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Definitions:

Nucleotides

Organic molecules that serve as the building blocks of nucleic acids like DNA and RNA, composed of a sugar, a phosphate group, and a nitrogenous base.

Nucleic Acids

Biopolymers essential to all known forms of life, which carry genetic information in cells, primarily in the form of DNA and RNA.

Genetic Information

The set of instructions found in DNA and RNA that dictates the physical and functional characteristics of an organism.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs for exhalation.