Currency and Demand Deposits Are Money Because

question 57

Multiple Choice

Currency and demand deposits are money because:

• A)they are backed by a precious metal.
• B)the government asserts that they are.
• C)they are "resting" in a chartered bank vault.
• D)they can be redeemed for an intrinsically valuable commodity such as gold.

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Definitions:

Mortgage

A loan specifically used to purchase real estate whereby the property itself serves as security for the loan.

Collateral

The property or assets that a borrower offers to a lender as security for a loan.

Bankruptcy Code

The codified system of federal bankruptcy laws that governs the processes and procedures for declaring bankruptcy in the United States, providing legal frameworks for debt discharge and asset liquidation.

Reorganizations

The process of restructuring a company's business or legal structure, often for purposes of profitability, efficiency, or to adapt to new markets.