USBank Notes Have No Intrinsic Value and Yet Are Widely

question 88

Multiple Choice

U.S.bank notes have no intrinsic value and yet are widely accepted as a medium of exchange.This is a result of:

• A)Gresham's law.
• B)the use of money as a store of value.
• C)the fiduciary monetary system.
• D)the valuation of currency as commodity money.
• E)the gold and silver reserves of the Federal government that backs the currency.