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Engineering economics refers to the aspects of economics and its tools of analysis most relevant to the engineer’s decision-making process.
True
Fiat money is a type of money that is backed by a physical commodity like gold or silver.
False
Interest is the amount of money paid for the use of borrowed capital or the income produced by money which has been loaned.
True
The formula for calculating future worth using simple interest is F = P(1 + in).
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Ordinary simple interest is computed on the basis of 12 months of 30 days each or 360 days a year.
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Representative money is a type of money that is backed by a physical commodity like gold or silver.
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Credit money is a type of money that is backed by the credit of the government or its issuer.
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The formula for calculating future worth using simple interest is F = P(1 + in).
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Commodity money is defined as any article or substance used as a medium of exchange, means of payment, or means of wealth.
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Simple interest is calculated using the principal only, ignoring any interest that has been accrued in preceding interest periods.
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