Multiple Choice
An element of trust is built into money because
A) the government maintains a monopoly over the money supply, and people tend to trust monopolies.
B) one must expect that it will still have value when the holder of money wants to spend it in the future.
C) people must trust that the government can always print more of it if necessary.
D) people must trust the Federal Reserve to prevent banks from failing.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: Which of the following would be the
Q51: The Fed's control over interest rates,direct lending
Q52: One potential problem with having private currencies-such
Q53: When financial institutions borrow from the Federal
Q54: The current chairman of the Federal Reserve
Q56: Money serves as a medium of exchange.This
Q57: The Federal Reserve Act establishing the Federal
Q58: Having government-issued money makes it easier for
Q59: Lowering the federal funds rate will tend
Q60: Which of the following is not one