Why do we accept paper money?Multiple choice question.Because the government backs it with something tangible like goldBecause the Bank of Canada will exchange it for goldBecause we are confident it will be exchangeable for goods and services when we spend itBecause it has intrinsic value

For much of U.S. history, citizens could exchange paper dollars for a certain amount of gold. This made paper money in the United States an example of:A.commodity money.B.fiat money.C.inflated money.D.representative money.

The biggest demerit of having paper money as currency is that itA. brings inflation to the economy.B. causes deficit in balance of payment.C. adversely affects an agrarian economy.D. demotivates producers to produce goods and services.

Which of the following does not explain what backs the money supply in the United States?Multiple ChoiceIt is backed by gold.It is widely accepted in transactions.It is designated "legal tender" by the federal government.It is relatively scarce.

Money is accepted as a(n) of because we are confident it will be exchangeable for real goods and services.

Money is whatever society says it is. This statement acknowledges that multiple choice 2money is the only medium that can be exchanged for goods and services.money must be an acceptable medium for exchange to occur.money creates a demand for goods.money is accepted if it is the currency of the country.