Question

STEVEJ DO NOT ANSWER MY QUESTIONS. YOU HAVE SUBMITTED INCOMPLETE QUESTIONS. IF YOU ANSWER THESE I WILL REPORT YOU TO CHEGG. From the economic way of thinking 2 part questions:

Fiat money is something that:

A Becomes money only by general consensus

B the political authority officially claims it as money

C does not exist in the US

D traders find unacceptable in highly developed economic systems

Inflation in the United States, other things constant,

A depreciates the value of the dollar against other foreign currency

B reduces the purchasing power of the dollar

C makes cooperation between buyers and sellers difficult

D All of these things

Answer 1

1.

A fiat money is defined as the medium of exchange, considered as a legal tender whose value is backed by the government or political authorities.

A) This statement is wrong, as its value is backed by government, there is no general concensus.

B) This statement is correct. The Federal Reserve is the authority in the USA.

C) This statement is wrong, as the US Dollar Note is an example of fiat money in the US.

D) This statement is wrong, traders find unacceptable in less or low developed economy.

2.

A) This statement is correct, due to inflation, the value of dollar depriciates against other foreign currency.

B) This statement is correct, inflation is rise in the price level of all the goods and services, thus reducing the purchasing power of the dollar.

C) This statement is correct. Inflation is a condition when there is high demand and the supply is limited. leading to increased pricing, therefore making the cooperation difficult.

Correct Answer is D, All of these things.