Fiat currencies only have value based upon exchange, whereas commodity money also has _______________________ value.A. intrinsicB. storageC. appreciationD. long-term Fiat currencies only have value based upon exchange,whereas commodity money also hasvalue.A. intrinsicB. storageC. appreciationD. long-term

Money refers to a medium of exchange that is widely accepted in transactions for goods, services,…

Answered: Fiat currencies only have value based…

Fiat currencies only have value based upon exchange, whereas commodity money also has value. A. intrinsic B. storage C. appreciation D. long-term

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter12: Money And Banking

Section: Chapter Questions

Problem 2E

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

Fiat currencies only have value based upon exchange, whereas commodity money also has _______________________ value.

A. intrinsic

B. storage

C. appreciation

D. long-term

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