Fiat Money

question 142

Multiple Choice

Fiat money:

• A) is currency from Italy.
• B) can include currency backed by gold but not by silver.
• C) is currency backed by the gold reserves held at the Bank of Canada.
• D) has advantages over commodity-backed money.

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Definitions:

Isocost Line

A graphical representation in economics that shows all possible combinations of inputs that can be purchased for a given total cost.

Capital

Assets including money, machinery, and structures employed in the creation of products and services.

Total Expenditures

The sum of all expenses and spending by an individual, organization, or government within a specified period.

Isocost Line

A graph line that shows all combinations of inputs which cost the same total amount.