Which of the Following Statements Best Describes Direct Democracy in the United

question 68

Multiple Choice

Which of the following statements best describes direct democracy in the United States?

• A)Every state and local government allows direct democracy, but initiatives are always limited to issues of taxation and economic regulation.
• B)Every state and local government allows direct democracy, and many hot-button issues are determined by initiatives.
• C)Some state and local governments allow direct democracy, and many hot-button issues are determined by initiatives.
• D)Some state and local governments allow direct democracy, but initiatives are always limited to issues of taxation and economic regulation.

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Definitions:

Fiat Money

Paper money that is not backed by or convertible into any good; it is money because the government says it is money.

Medium of Exchange

A facilitating device or arrangement employed to assist in the transactions of buying, selling, or trading items between entities.

Legal Tender

Currency that must be accepted if offered in payment of a debt, by law.

Federal Deposit Insurance

A government guarantee that protects bank depositors' funds up to a certain limit in case of a bank failure.