Suppose You Come into Possession of Two "Silver" Dollars,one Minted

question 60

Multiple Choice

Suppose you come into possession of two "silver" dollars,one minted in the 1950s which contains a lot of silver,the other minted in the 2000s which contains no silver at all.The legal exchange rate between the coins is fixed at one for one.According to Gresham's law,the 1950s silver dollar

• A)is considered "bad" money.
• B)will drive out of circulation the 1990s silver dollar.
• C)is more likely to be used as a medium of exchange.
• D)is less likely to be used as a medium of exchange.
• E)is less likely to be used as a store of value because it will appear old fashioned.

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Definitions:

Risk Society

A society where the management and prevention of risks, particularly those that are man-made, become central to social, political, and economic life.

Technological Determinism

The theory that technology shapes and determines the development of human social structure and cultural values.

Normal Accidents

The concept that in complex systems, accidents are unavoidable and inherent due to the intricate interactions and dependencies of system components.

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Money spent by a business entity to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase its long-term revenue.