Which of the following is true of fiat money?
A) Fiat money is illegal and difficult to counterfeit.
B) The raw materials required for the production of fiat money are available only in a few countries.
C) Fiat money is not backed by a physical commodity.
D) The technology required to produce fiat money is not widely available.
C
You might also like to view...
A one-year bond has an interest rate of 3% and is expected to fall to 2.5% next year and 2% in two years. The term premium for a two-year bond is 0.3% and for a three-year bond is 0.5%
What are the interest rates on a two-year bond and three-year bond according to the liquidity premium theory?
According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might
a. lower the discount rate and sell bonds. b. lower the discount rate and buy bonds. c. raise the discount rate and sell bonds. d. raise the discount rate and buy bonds.