The Wide Acceptance of Fiat Money Is Determined By

question 64

Multiple Choice

The wide acceptance of fiat money is determined by:

• A)people's belief that it is worth something.
• B)the amount of precious metal that the government holds to back the money.
• C)the money's market value as a commodity.
• D)the rate of interest,which is the price paid to borrow money.
• E)its ability to function as a unit of account.

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Definitions:

Labor Force

The total number of people available to work, including both the employed and the unemployed.

Reducing Inequality

Efforts or policies aimed at decreasing income and wealth disparities among individuals or groups.

Personal Capital

Financial assets or investments owned by an individual, contributing to their net worth.

Compensating Differentials

Wage differences across jobs that reflect the desirability of the job attributes, compensating workers for job inconveniences or hazards.