Because commodity money is not uniform in quality, there is a tendency
A) for higher quality commodity money to drive lower quality commodity money out of circulation.
B) for lower quality commodity money to drive higher quality commodity money out of circulation.
C) for stable commodity money to drive unstable commodity money out of circulation
D) for unstable commodity money to drive stable commodity money out of circulation.
Ans: B) for lower quality commodity money to drive higher quality commodity money out of circulation.
You might also like to view...
Which of the following is an example of a bank's reserves?
A) demand deposits with other banks B) deposits with the Federal Reserve C) Treasury bonds and bills D) state bonds of the state in which the bank is located but not state bonds of other states.
If marginal costs differ quite substantially from average total costs, then using a cost-plus pricing schedule will not lead to the profit maximizing price
Indicate whether the statement is true or false