Which of the Following Statements Correctly Differentiates Between Commodity Money

question 64

Multiple Choice

Which of the following statements correctly differentiates between commodity money and fiat money?

• A)Commodity money is created by the government while fiat money is created in the private sector.
• B)Fiat money is created by the government while commodity money is created by the government.
• C)Commodity money can be used for transactions in the international market, while fiat money cannot be used for transactions in the international market.
• D)Fiat money has value decreed by the government, while commodity money is valued because of the material it is made of.

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Definitions:

EPS

Earnings Per Share, a financial ratio that measures the amount of profit attributed to each outstanding share of a company's common stock, indicating the company's profitability.

Dividends

Distributions issued to shareholders by a company, typically sourced from the organization's earnings.

Repurchase

Also known as a buyback, it is a company's decision to buy its own shares from the marketplace, potentially raising the value of remaining shares.

Tax Advantages

Financial benefits derived from tax laws that reduce the amount of tax to be paid by allowing certain deductions, credits, or deferrals.