Which of the following statements about fiat money is correct?
a) Fiat money has intrinsic value.
b) Fiat money is not accepted as money.
c) Fiat money is legal tender by government decree.
d) Fiat money can only be electronic.
Ans: c) Fiat money is legal tender by government decree.
You might also like to view...
A return to the gold standard, that is, using gold for money will ________ the ________ for gold, ________ its price, everything else held constant
A) increase; demand; increasing B) decrease; demand; decreasing C) increase; supply; increasing D) decrease; supply; increasing
On a certain date the banking system had $2 billion in excess reserves. The legally required reserve ratio was 12.5 percent. Potentially, if these funds were fully loaned out, the banking system as a whole could increase the money supply by a maximum of: a. $0.25 billion. b. $2.5 billion
c. $12.5 billion. d. $16 billion