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The Major Problem of a Currency That Is Fractionally Backed

Question 87

Multiple Choice

The major problem of a currency that is fractionally backed and convertible into a precious metal is that of


A) clipping,which debases the metal coins.
B) counterfeiting.
C) maintaining its convertability into the metal.
D) paper money being less durable than gold.
E) perennial shortages of paper currency.

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