Fiat Money

question 84

Multiple Choice

Fiat money

• A)is money that would have no value if it were not usable as money.
• B)is illegal in most advanced, industrial countries.
• C)is usually some type of precious metal.
• D)will generally be accepted in trade for less than its face value.

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Definitions:

Present-Value Equivalent

A calculated amount representing the current value of a future sum of money or stream of cash flows, given a specified rate of return.

Cost of Funds

The interest rate that banks and other financial institutions pay for the use of funds deposited in their accounts by savers or obtained from other external sources.

ROI

Return on Investment, a financial metric used to measure the efficiency or profitability of an investment.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial health over a period.