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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