The basic requirement for an item to function as money is that it be:
A. Backed by precious metals—gold or silver
B. Authorized as legal tender by the central government
C. Generally accepted as a medium of exchange
D. Some form of debt or credit
C. Generally accepted as a medium of exchange
You might also like to view...
A perfectly competitive firm acts as a ___________, so it calculates total revenue by multiplying the given market price by the quantity of output the firm chooses.
a. natural monopoly b. price taker c. technological monopoly d. drag on the market
The total monetary returns associated with stock ownership result from dividends and capital gains.
Answer the following statement true (T) or false (F)
The highest fifth of all families receive approximately ________ of the distribution of annual money income among families
a. 5 percent b. 10 percent c. 25 percent d. 50 percent
Which national income account should be examined to discover trends in the after-tax income that people have to save and spend?
a. Gross domestic product (GDP) b. Gross national product (GNP) c. Disposable personal income (DI) d. National income (NI)