Which of the Following Is Most Typical of a Command

question 7

Multiple Choice

Which of the following is most typical of a command economy?

• A)Consumers have choices of many substitutes for any given product.
• B)Quality of products and services tends to be consistent.
• C)The prices of goods and services frequently change.
• D)Many products are usually in short supply.

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Definitions:

Commodity Money

Money that has intrinsic value, such as gold or silver, used historically as a medium of exchange, unit of account, and store of value.

Money Market Mutual Funds

Investment funds that collect money from various investors to purchase short-term, high-quality debt securities and offer liquidity and relatively low risk.

Federal Reserve Bank

One of the 12 regional banks in the Federal Reserve System of the United States, which serves as the central bank of the country.

Commercial Banks

Financial institutions that offer a wide range of services, including deposits, loans, and other financial products to both individuals and businesses.