Which of the following statements is true of money?
A) Paper money was invented around 1,000 A.D. in China.
B) Paper money was the first form of money to be invented.
C) One of the limitations of paper money is that it does not function as a store of value.
D) Fiat money was used in the barter system of exchange.
A
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In the example of the Nike running shoe, we see that
A) selling costs account for over half of a shoe's retail price. B) materials actually account for two-thirds of the retail price of the shoes. C) taxes account for one-quarter of the retail price of the shoes. D) production costs exceed selling costs by a wide margin. E) raw materials costs are by far the largest component of the total costs of producing the shoes.
In Zealand, banks' desired reserve ratio is 20 percent and there is no currency drain. The money multiplier equals ________
A) 0.50 B) 0.20 C) 20.0 D) 5.0