Single Answer MCQ
Q-00015854
How does modern currency differ from historical forms of money?
1
It has intrinsic value.
2
It is backed by government authority.
3
It grows in value over time.
4
It can only be used for goods, not services.
Answer and Solution
Answer
B. It is backed by government authority.
Solution:
Modern currency is not made of precious metals and is accepted as a medium of exchange because it is authorized by the government, unlike historical forms that often had intrinsic value.
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