The reason the U.S. money has value is that it
The reason the U.S. money has value is that it
is commodity money
is backed by gold
has a fixed value established by the Federal Reserve
is accepted by others in exchange for goods and service
is fiat money
Homework Answers
Fourth option is the right answer. All the countries in the world readily accept USD in exchange of their goods and services and that is the primary reason.
The first three options are factually incorrect. And the last one is true for almost all currencies of the world but none of them is as readily acceptable as the USD.
When countries replaced gold and silver coins with paper money exchangeable for certain amounts of precious...
When countries replaced gold and silver coins with paper money exchangeable for certain amounts of precious metals, the monetary system evolved from: O Using commodity money to using commodity-backed money. O Using commodity-backed money to using fiat money. 0 Using commodity money to using fiat money. O Using fiat money to using commodity-backed money.
Gold used as Money: Is commodity money Would be a medium of exchange Has no intrinsic value Both A and B are correct. Fu...
Gold used as Money: Is commodity money Would be a medium of exchange Has no intrinsic value Both A and B are correct. Funds in your checking account: Would be included in your list of assets Is a medium of exchange Is fiat money All of the above are true
3. The kinds of money Personal possession of currency is prohibited in U.S. prisons, although, in practice, priso...
3. The kinds of money Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. Until 2003, the year in which the U.S. govenment banned smoking in federal penitentiaries, cigarettes were the preferred medium of exchange among prisoners. One important difference between using cigarettes and using dollars as money is that have intrinsic value. Cigarettes are an example of money 3. The kinds of money U.S. dollars Personal possession of currency is...
because it doesn't need approval 1. The Federal Reserve is when making monetary policy decisions. a....
because it doesn't need approval 1. The Federal Reserve is when making monetary policy decisions. a. decentralized; presidential and congressional b. independent within government; presidential and congressional c. decentralized; private sector d. independent within government; foreign 2. The organization within the Federal Reserve that determines monetary policy is: a. the Board of Governors b. the New York Federal Reserve District Bank c. the Federal Open Market Committee d. the Federal Monetary Control Committee 3. The Federal Reserve system hasdistrict banks....
For anything to be used as money, it has to be a tangible commodity. issued by...
For anything to be used as money, it has to be a tangible commodity. issued by the government. backed by gold. universally accepted.
1. Which of the following statements is true of money? It is anything accepted in exchange...
1. Which of the following statements is true of money? It is anything accepted in exchange for goods and services. It is not a gold-backed currency. It is not readily convertible to precious metal. It needs to be accompanied by a government "note" or promise to be considered valid. It is exclusively dispatched through automated teller machines. 2. There is an increase in economic activity when the Federal Reserve Board: Group of answer choices does the hokey-pokey. raises the discount...
Money is anything that serves asa_ OUnit of account Store of value O Medium of exchange...
Money is anything that serves asa_ OUnit of account Store of value O Medium of exchange O None of the above. QUESTION 20 Which one of the following is fiat money? OA Federal Reserve Note OA candy bar A gold bar OA credit card QUESTION 21 If the reserve ratio is 10 percent, $1,400 of additional reserves can create up to $140 of new money $14,000 of new money $140,000 of new money. O None of the above is correct.
Gold-backed money: uses more gold resources than does the commodity money such as gold coins has...
Gold-backed money: uses more gold resources than does the commodity money such as gold coins has no intrinsic value but the value is guaranteed that it can be converted into gold at certain price is a way to provide the functions of money without tying up its value to gold none of the above
1. The money-multiplier process is based on the principle of fractional reserve banking. T/F 2. Contraction...
1. The money-multiplier process is based on the principle of fractional reserve banking. T/F 2. Contraction of the money supply can aggravate a recession. T/F 3. Fiat money has value because it A.) is backed by gold B.) can be divided into smaller units C.) can be exchanged for precious metals at fixed price D.) can be used to buy goods and services E.) All of above 4.) One conceptual problem in assigning assets to M1, M2, and so on,...
1.) Gold, silver, and furs, when used as money, are referred to as fiat money precious...
1.) Gold, silver, and furs, when used as money, are referred to as fiat money precious money paper currency commodity money exchange money 2.) The money supply is considered to be M1. M1 consists of what? currency + checking account balances + saving account balances currency + checking account balances + travelers' checks currency + checking account balances + credit cards currency + credit cards + certificates of deposit currency only 3.) The main purpose of financial intermediaries is that...
When countries replaced gold and silver coins with paper money exchangeable for certain amounts of precious metals, the monetary system evolved from: O Using commodity money to using commodity-backed money. O Using commodity-backed money to using fiat money. 0 Using commodity money to using fiat money. O Using fiat money to using commodity-backed money.
3. The kinds of money Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. Until 2003, the year in which the U.S. govenment banned smoking in federal penitentiaries, cigarettes were the preferred medium of exchange among prisoners. One important difference between using cigarettes and using dollars as money is that have intrinsic value. Cigarettes are an example of money 3. The kinds of money U.S. dollars Personal possession of currency is...
because it doesn't need approval 1. The Federal Reserve is when making monetary policy decisions. a. decentralized; presidential and congressional b. independent within government; presidential and congressional c. decentralized; private sector d. independent within government; foreign 2. The organization within the Federal Reserve that determines monetary policy is: a. the Board of Governors b. the New York Federal Reserve District Bank c. the Federal Open Market Committee d. the Federal Monetary Control Committee 3. The Federal Reserve system hasdistrict banks....
Money is anything that serves asa_ OUnit of account Store of value O Medium of exchange O None of the above. QUESTION 20 Which one of the following is fiat money? OA Federal Reserve Note OA candy bar A gold bar OA credit card QUESTION 21 If the reserve ratio is 10 percent, $1,400 of additional reserves can create up to $140 of new money $14,000 of new money $140,000 of new money. O None of the above is correct.
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