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Questions and Answers
What is fiat money?
What is fiat money?
- Government-issued currency not backed by any physical commodity (correct)
- Money derived from its inherent worth as a physical commodity
- Government-issued currency backed by a physical commodity like gold or silver
- Physical token representing a claim to an underlying valuable asset
Which type of money is directly usable for trade or industry beyond its monetary function?
Which type of money is directly usable for trade or industry beyond its monetary function?
- Credit Money
- Commodity Money (correct)
- Fiat Money
- Representative Money
What is the value of representative money initially backed by?
What is the value of representative money initially backed by?
- Government bonds
- Precious metals like gold or silver (correct)
- Physical token representing a claim to an underlying valuable asset
- Future payments arising from credit extensions
What is the interest?
What is the interest?
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Which type of money includes checks, promissory notes, and credit cards?
Which type of money includes checks, promissory notes, and credit cards?
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What is the main difference between Ordinary Simple Interest and Exact Simple Interest?
What is the main difference between Ordinary Simple Interest and Exact Simple Interest?
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What is the difference between Nominal Rate of Interest and Effective Rate of Interest?
What is the difference between Nominal Rate of Interest and Effective Rate of Interest?
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What does Continuous Compounding of Interest assume?
What does Continuous Compounding of Interest assume?
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What is the main characteristic of Perpetuity?
What is the main characteristic of Perpetuity?
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What is the key feature of Annuity Due?
What is the key feature of Annuity Due?
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