In a fiduciary monetary system, money is backed by
A) the public's confidence that the assets will continue to be accepted as money.
B) the intrinsic value of the materials used to make the assets.
C) the assets of the institutions that issue the various assets used as money.
D) gold.
A
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An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
Accounting profits equal total revenue minus:
A. total explicit costs. B. total implicit costs. C. total economic costs. D. economic profits.
A good's price elasticity of demand can be calculated by using the formula of
A) percentage change in price divided by percentage change in quantity demanded. B) percentage change in quantity demanded divided by percentage change in price. C) percentage change in price divided by percentage change in income. D) absolute change in quantity demanded divided by absolute change in price.
If the Reserve Bank of Australia sells bonds and securities in the open market, this is likely to lead to a ______ in interest rates and a(n) _______ of the Australian dollar.
Fill in the blank (s) with the appropriate word(s)