Which of the following is the best example of fiat money? a. gold coins b. business stocks c. a valuable painting d. dollar bills | Homework.Study.com (2024)

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• Which one of the following is the best example of fiat money? a. Gold coins. b. Business stocks. c. A valuable painting. d. Dollar bills.
• Which one of the following is the best example of commodity money? a. Gold coins. b. Business stocks. c. A valuable painting. d. Dollar bills.
• Which of the following would be an example of fiat money? A. Cigarettes used as money in prisons B. Dollar bills C. Gold coins D. Arrowheads used as a medium of exchange E. Chickens used for bartering
• Which of the following is the best description of fiat money? A) Coins made of gold and silver. B) Paper money that can be redeemed for gold or silver. C) Legal tender that has no intrinsic value. D) Checking account and debit cards.
• Which of the following best explains the difference between commodity money and fiat money? A. Commodity money is usually authorized by the central bank, whereas fiat money has to be exchanged for gold by the central bank. B. Commodity money has no va
• Which of the following is a store of value? (a) Treasury bonds (b) Gold (c) Currency (d) All of the above.
• What is commodity money and fiat money? Which kind does the United States use?
• Which of the following best explains the difference between commodity money and fiat money? A. Commodity money is usually authorized by the central bank, whereas fiat money has to be exchanged for gol
• Which of the following is NOT part of the U.S. money stock (supply)? a. coins. b. bonds. c. checkable deposits. d. paper currency.
• What gives money value under a fiat system? a) The supply of fiat money is controlled by the government, b) Fiat money is also a commodity, c) Fiat money is backed by gold, d) Fiat money is the same as Treasury bonds.
• Which of the following is not required for paper dollars to work as a medium of exchange? A. An established and regulated system of fiat money B. Intrinsic value backed by gold C. Government prosecution of counterfeiters D. Acceptance as part of social co
• What do you refer to as a monetary system in which paper money and coins had the value of certain amounts of gold?
• Fiat money is: a. money backed by gold. b. something more valuable as a monetary instrument than as commodity. c. anything that the government says is money. d. All of the above
• What is a monetary system in which paper money and coins have the value of certain amounts of gold?
• Which of the following is considered to be part of the money supply? (There may be more than one correct answer.) a. Currency. b. Treasury bills. c. Diamonds. d. Coca-Cola stock. e. Checking account deposits. f. 10% off coupons good at the bookstore.
• What is the difference between fiat and commodity money? a. Fiat money has a higher intrinsic value than commodity money. b. Fiat money allows an economy to easily expand the money supply, whereas it is more difficult to expand the supply of commodity mon
• Which of the following is commodity money? a. coins b. paper currency c. a negotiable bond d. cattle
• What is a monetary system in which paper, money, and coins have the value of a certain amount of gold?
• Which of the following insures the value of the U.S. dollar? A. The euro and other foreign currencies held by the Federal Reserve B. Gold bars in secure locations like Fort Knox C. The promise of the U.S. government to maintain its value D. The value of t
• How does fiat money differ from commodities, like gold or silver, that were used as money? Define both Money supply 1 and money supply 2.
• What is the difference between Fiat money and Commodity money? One paragraph will suffice for your answer.
• Fiat money and is issued by. A. has no or very little value except as money; central banks. B. is rarely used in modern economies; private firms C. functions well only if it can be redeemed for gold or other precious metals; brokerage firms D. serves well
• Paper money is often described as "fiat money." Why do so many people believe that money should be backed by some kind of precious metal such as gold? Would money backed by bricks be preferred to mone
• What are the two features of money that distinguish it from all other goods in the economy? a. Money is government issued and it is redeemable for gold or silver. b. Money is part of every barter transaction and it is divisible. c. Money is accepted as
• Which of the three functions of money are met by each of the following assets in the Canadian economy? a. paper dollar b. precious metals c. collectibles such as baseball cards, stamps, and antiques
• Select the correct statement about fiat money. a. The U.S. dollar is fiat money. b. Fiat money is tied to a fixed quantity of gold and therefore protects against inflation. c. Fiat money eliminates the need for monetary policy and the Federal Reserve's ro
• Consider what distinguishes money from other assets in the economy. Consider what is commodity money and fiat money, and which kind we use.
• Define: - Commodity Money. - Commodity-basket Money. - Fiat Money.
• Silver is an example of: a. commodity money b. barter money c. fiat money d. representative money
• Which of the following regarding money is not true? a) Money is an asset. b) Money is backed by gold. c) Money is a form of wealth. d) Money is not an equivalent to income.
• Which of the following options is correct? is the profit made by the government from issuing fiat money. a. Circulation revenue b. Seigniorage c. The currency commission d. The liquidity premium
• Which of the following exemplifies money in U.S. society? O Debit cards O Gold bars O Coffee beans O Bank accounts
• Which of the following is/are characteristics of money? Select all that apply. a) gets its value from its purchasing power b) is anything backed by gold c) can only be created by the Federal Reserve d) can be divided into M1 and M2 based on liquidity
• Explain the difference between commodity money and fiat money.
• Which of the following are assets of the Fed? a) bank reserves b) coins c) government bonds d) federal reserve notes
• Which of the following U.S. Treasury securities represents ownership of the national debt?
• Which of the following is an accurate statement of the money supply in the United States? A. The money supply is backed by gold reserves. B. The least liquid measure of money is M2. C. M1 is larger than M3. D. Paper money can be exchanged at commercial ba
• What establishes the value of fiat money? a. Our collective trust and confidence that the central government, which decrees that money cannot be refused as payment for debt. b. Gold and silver owned by the large commercial banks. c. The central government
• Shells are an example of a A. commodity money B. barter money. C. fiat money. D. representative money.
• What establishes the value of fiat money? a. Our collective trust and confidence that the central government, which decrees that money cannot be refused as payment for debt. b. Gold and silver owned by the large commercial banks. c. The central governm
• Which of the following functions of money would be violated if inflation were high? a. unit of account b. store of value c. certificate of gold d. medium of exchange
• Fiat money: A. is not backed by any precious commodity. B. can be exchanged for gold. C. is backed by gold, but cannot be exchanged for it. D. is not legal tender. E. can be backed by gold or silver.
• Which of the following would not be considered to be part of the money supply? A. Currency in ATM machines B. Coins stored in children's piggy banks C. U.S. Federal Reserve notes being used for transactions in India D. Both A and B E. None of the above; a
• Distinguish between commodity money and fiat money.
• A coin whose face value is greater than its intrinsic value is an example of a) Commodity money b) Representative money c) Fiat money d) Near money
• What is a unit of account? What is commodity money? Fiat? Legal tender?
• What is fiat currency? Explain the role played by the state in the public acceptance of fiat currency as money. Explain two different ways by which banknotes are created.
• Fiat money is? a. always backed by gold or silver. b. useful in buying Italian cars.
• What is a difference between fiat and commodity money? A.Fiat money allows an economy to easily expand the money supply, whereas it is more difficult to expand the supply of commodity money. B. Tyin
• How does commodity money differ from fiat money?
• Dollar bills in the modern economy serve as money because A. they are backed by the gold stored in Fort Knox. B. they can be redeemed for gold by the central bank. C. they have value as a commodity independent of their use as money. D. people have confide
• How are paper money (fiat) and commodity money different?
• Paper currency is a: A. bond B. fiat money C. barter money D. commodity money
• Which of the following statements is true? a. A commodity money is often determined by government bureaucrats. b. A commodity money comes into existence through private, not government, decisions. c. A fiat money represents an object that has intrinsic va
• In a system of money that is based on fiat money, who or what backs up the money? In other words, who do we trust with our money? Why does the value of the dollar decline?
• Which of the following statements is true of money? a. Only gold and silver qualify as money. b. Any commodity can be used as money, so long as it is portable and fungible. c. Money is created by government and cannot exist in a state of anarchy. d. The v
• Which of the following statements is true of money? a. Only gold and silver qualify as money. b. Any commodity can be used as money, as long as it is portable and fungible. c. Money is created by government and cannot exist in a state of anarchy. d. The v
• Which function of money best defines $1.25 as the price of a 20-ounce bottle of pop? a. Medium of exchange b. Unit of account c. Store of value d. Transfer of ownership e. Fiat money
• 1. What do we call "currency"? 2. What is the meaning of it? 3. What is behind those green-dollar notes and coins? 4. Why do we call it currency? and then connect to the Fed and its actions.
• Under a fiat money system, what are the components of the money supply?
• Which of the following statements is correct? A. The Treasury bills that are purchased by the Fed are not part of our national debt. B. The national debt is equal to the dollar amount of outstanding
• The U.S. Dollar can best be described as: a. commodity money. b. reserve money. c. fiat money. d. commodity-backed money.
• A difference between commodity money and fiat money is that: a. commodity money is used in a barter economy. b. commodity money cannot be used as a unit of account. c. fiat money does not have any intrinsic value. d. fiat money cannot be used as a unit of
• Which of the following make up the money supply as it is most narrowly defined? A) coins and currency held by the nonbank public, traveler's checks, and savings deposits B) all coins and currency held by the nonbank public C) coins and currency held by
• Currency notes and coins are a. fiat money. b. bank Money. c. high powered money. d. both A and C.
• What type of money would you say the Rai stones are? Are they commodity money? Are they fiat currency? Why or why not?
• What is the federal reserve function of buying and selling government securities, which include treasury bonds, notes, and bills?
• Which of the following assets is the most liquid? A) Land. B) Gold. C) Stocks. D) Money.
• Money that has no value other than as money is called money. A) fiat B) intrinsic C) commodity D) government
• Which of the following does the Federal Reserve not do? A. conduct monetary policy B. act as a lender of last resort C. convert Federal Reserve notes into gold D. serve as a bank regulator
• Check each of the following characteristics of money. - gets its value from its purchasing power - is anything backed by gold - can only be created by the Federal Reserve - can be divided into M1 and M2 based on liquidity
• One problem with fiat money, as compared to commodity money, is that _____. a. more resources are used to create fiat money b. there is frequently too little fiat money available c. there is greater potential for inflation with fiat money d. fiat money mu
• Money that has an alternative use as an economic good is: a. commodity money. b. fiat money. c. specie. d. wampum.
• What is coined money, usually gold or silver, used to back paper money?
• The term seigniorage refers to ____. a. the conversion of paper money to a valuable commodity b. clipping c. revenue earned from the power to coin money d. fiat money e. none of the above
• Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called _____ money.
• Which of the following are assets of the Fed? a) bank reserves b) coins c) government bonds
• What would the result be for the American economy if the Federal Reserve were eliminated and the money supply was based on the amount of gold?
• Money that has no intrinsic value and is created by a government decree is called: a) Asset money, b) Fiat money, c) Barter money, d) Commodity money.
• The U.S. government funds the federal budget deficit by: a. selling securities such as Treasury bonds and Treasury bills. b. selling stock in government-owned corporations. c. selling shares in gold owned by the Federal Reserve via special drawing rights.
• The ease with which money can be used to buy goods and services is called: a. Fiat money b. Liquidity c. Return on the asset d. Spendability
• Which of the following is an example of an economic investment? a. Putting money in a bank CD. b. Buying a corporate bond or stock. c. Building a new bank office. d. Purchasing shares of a mutual fund.
• Which type of money is the most difficult to counterfeit? a. fiat b. commodity c. representative d. credit
• Which of the following is not considered an asset for a bank: a. Customer deposits. b. U.S. government treasury bills. c. Corporate loans. d. U.S. government issued debt.
• All of the following are examples of coupon bonds except: a. corporate bonds b. U.S. Treasury notes c. U.S. Treasury bonds d. U.S. Treasury bills
• In a fiat money economy, M1 includes currency as well as: a. certificates of deposit, b. money market mutual funds, c. checkable deposits, d. savings deposits, e. gold holdings.
• According to Chartalism, fiat (paper) money has value because a) it is declared legal tender. b) it is backed by precious metal such as gold. c) the government promises to convert it into gold. d) it is the only thing the state will accept in the paymen
• In 2008, the Wall Street Journal reported that prisoners were exchanging goods and services using energy bars as a medium of exchange. Energy bars in prisons are an example of and U.S. dollars are an example of. a. fiat money; fiat money b. fiat money; co
• In the United States, what is our confidence in our fiat money derived from?
• All of the following are examples of coupon bonds except A. corporate bonds. B. U.S. Treasury bills. C. U.S. Treasury notes. D. U.S. Treasury bonds.
• The term refers to a. the d, conversion of paper money to a valuable commodity e, revenue earned from the power to coin money fiat money none of the above ANS: The reserve is the ratio of b. Federal Reserve member banks to nonmember banks Federal Reserve
• Which of the following is an example of expansionary monetary policy for the Federal Reserve? A. Increasing the discount rate B. Increasing the reserve ratio C. Buying Treasury securities from commercial banks D. Lowering income taxes E. Removal of import
• The main reason that U.S. currency cannot be turned in to the government in exchange for a tangible asset such as gold is that: A) This gives the government more freedom to manage the nation's money
• Which of the following is not one of the criteria for a commodity to serve as money? a. The commodity must be durable. b. The commodity must be accepted by many people as money. c. The commodity must be issued as currency or coin. d. The commodity mus
• Which of the following is not one of the functions of the Federal Reserve? a. Clearing checks. b. Printing currency. c. Supervising and regulating banks. d. Controlling the money supply.
• If you returned a $5 Federal Reserve note to the Fed, you could receive A) $5 in silver B) $5 in gold C) 5 one-dollar bills D) 10 one-dollar bills E) a small gold bar
• For anything to be considered money, it must be: A) a valuable commodity, such as gold B) a token, such as a green piece of paper C) either a commodity or a token, as long as it is generally accepted as a means of payment D) a mystical token, such as whal
• Which of the following is not a characteristic of money? a. Medium of exchange b. Unit of account c. Mechanism for barter d. Store of value
• When the Fed conducts open market operations, it buys and sells A) gold. B) foreign currencies. C) stocks. D) government securities.
• How do modern economies regulate the supply of money to avoid inflation after the switch from gold to paper currency?