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Questions and Answers
What is the function of money in an economy?
What is the function of money in an economy?
- Generate government revenue
- Control inflation rates
- Regulate international trade
- Facilitate exchange of goods and services (correct)
What is the main role of credit in the economy?
What is the main role of credit in the economy?
- Stabilize exchange rates
- Control unemployment rates
- Facilitate investment and consumption (correct)
- Regulate fiscal policies
What is the impact of excessive money supply on an economy?
What is the impact of excessive money supply on an economy?
- Depreciation of the currency
- Deflation
- Stagnation
- Inflation (correct)
Money and credit are not important in the study of economics.
Money and credit are not important in the study of economics.
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Credit plays a minor role in the overall economy.
Credit plays a minor role in the overall economy.
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An excessive money supply does not impact the economy.
An excessive money supply does not impact the economy.
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