Which of the Following Is Not Correct About the Money

question 56

Multiple Choice

Which of the following is not correct about the money kept in transactions accounts?

• A)It permits direct payment to a third party.
• B)It is backed by gold held by the government.
• C)It is part of the basic money supply.
• D)It is a good substitute for cash in many cases.

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Definitions:

Floor

The minimum price or wage level that is legally or otherwise formally set, below which the actual price or wage cannot fall.

Equilibrium Price

The selling rate at which the number of products on offer is the same as the number of products wanted.

Equilibrium Quantity

The quantity of a product or service at which the quantity supplied is equal to the quantity demanded at the market price.

Equilibrium Price

The price at which the quantity of a product offered for sale by producers equals the quantity that consumers are willing to buy.