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.
c
Economics
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Financial intermediaries reduce the costs of negotiation by
A) investing in a large number of projects with independent returns. B) gaining expertise in evaluating and monitoring investments. C) investing in a small number of projects with independent returns. D) pooling funds.
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