If Most Individuals Accept Paper Currency in Transactions,and Paper Currency

question 93

Multiple Choice

If most individuals accept paper currency in transactions,and paper currency is convertible into gold,then banks can safely issue

• A)no more paper currency than the value of the gold they hold.
• B)more paper currency than the value of the gold they hold.
• C)as much paper currency as they please.
• D)paper currency equal to a fraction of the gold they hold.
• E)paper currency equal to the bank's commercial debt divided by their gold reserves.

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Definitions:

Financially Independent

The state of having sufficient personal wealth to live, without having to work actively for basic necessities.

Launched

The act of starting or initiating something, such as a product in the market or a spacecraft into orbit, often with a formal event or announcement.

Depressed

A state characterized by feelings of severe despondency and dejection, often accompanied by a lack of energy and difficulty in maintaining interest in life.

Social Isolation

A state where an individual has limited or no interaction with others, leading to feelings of loneliness and social withdrawal.