The Reason We Are Willing to Accept Money with No

question 161

Multiple Choice

The reason we are willing to accept money with no intrinsic value is that

• A)paper currency may be exchanged for full-bodied money.
• B)the money supply is backed by an equal amount of gold and silver.
• C)we have a fiduciary monetary system in which currency has both acceptability and predictability of value.
• D)the value of the money varies directly with changes in the price level.

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Definitions:

Regulations

Rules or directives made and maintained by an authority to regulate a specific activity or sphere.