In a Fiduciary Monetary System, the Value of the Money

question 453

Multiple Choice

In a fiduciary monetary system, the value of the money issued by a government is based on

• A) the gold held in that government's vaults.
• B) public confidence in that currency's acceptability and predictability of value.
• C) the ability to convert it to some valuable commodity.
• D) its being made out of some material with a market value equal to a bill's face value.

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Definitions:

Net Income

The total profit or loss of a company after deducting all expenses, taxes, and costs from total revenue.

Accounting Period

The span of time at the end of which the financial position of a business is calculated and reported, typically a month, quarter, or year.

Unexpired Insurance

The portion of an insurance premium that has not yet expired during the policy period.

Fiscal Period

A specific time period for which an organization prepares financial statements, typically a year, but can also be a quarter or month.