A Currency That Is Not Backed by Gold, Silver, or Any

question 169

Multiple Choice

A currency that is not backed by gold, silver, or any other precious commodity equal to the face value of the money is known as

• A) fake money.
• B) weak money.
• C) token money.
• D) commodity money.

---

Definitions:

Risk Averse

A characteristic of preferring to avoid risk, inclining towards guaranteed outcomes over potentially higher-yielding but uncertain ones.

Income

The accumulation of funds, characteristically on a habitual basis, through work or investing.

Von Neumann-Morgenstern

A theory of expected utility that describes how rational individuals choose among uncertain prospects, emphasizing the maximization of utility for decision-making under uncertainty.

Utility Function

A mathematical representation in economics that portrays an individual's preference ranking for different bundles of goods or outcomes.