Fiat money is:
A. money created by rule.
B. money used for the exchange of large commodities.
C. any form of money that is more readily accepted than commodity-backed money.
D. any form of money that can be legally exchanged into a fixed amount of an underlying commodity.
Answer: A
You might also like to view...
When the interest rate falls in the money market, the quantity of money demanded ________ and the quantity of money supplied ________
A) increases; decreases B) decreases; increases C) stays the same; decreases D) increases; stays the same
Suppose that in 2016, all prices in the economy double and that all wages and salaries also double. In 2016 you
A) are no better off or worse off than you were in 2015 as the purchasing power of your salary has remained the same. B) are worse off than you were in 2015 as you can no longer afford to buy as many goods and services. C) are better off than you were in 2015 as your salary is higher than it was in 2015 and you can now buy more goods and services. D) cannot determine whether you are better off or worse off than you were in 2015, because the purchasing power of your salary cannot be determined.
Suppose a video craze in the United States makes a particular Japanese-produced video game very popular. This would tend to:
a. affect the U.S. balance of payments but not the balance of trade. b. reduce any existing balance of trade deficit in the United States. c. increase the balance of trade deficit of the United States d. increase the balance of trade surplus of the United States.
The Paradox of Leverage states that:
a. Excessive leverage is really just an illusion. It occurs when companiesmisestimate the value of their assets and equity. b.When a single firm, in isolation, tries to de-lever its balance sheet, the net effect is often for its leverage to rise. c. Leverage is a puzzle (i.e., a paradox) and always will be. d. When a large portion of the market tries to de-lever its balance sheet, asset prices fall, thereby causing leverage to increase (not decrease). e. None of the above.