首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Types of Money The functions of money as a medium of exchange and a measure of value greatly facilitate the exchange of goods an
Types of Money The functions of money as a medium of exchange and a measure of value greatly facilitate the exchange of goods an
admin
2013-08-12
62
问题
Types of Money
The functions of money as a medium of exchange and a measure of value greatly
facilitate
the exchange of goods and services and the specialization of production. Without the use of money, trade would be reduced to barter, or the direct exchange of one commodity for another. This was the means of exchange used in primitive societies, and bartering is still practiced in some parts of the world today. In a barter economy, a person having something to trade must find another who wants it and has something acceptable to offer in exchange. In a money economy, the owner of a commodity may sell it for money, which is acceptable in payment for a wide range of other goods or services, thus avoiding the time and effort that would be required to find someone who could make an acceptable trade. Money may thus be regarded as a keystone of modern economic life.
The most important types of money are commodity money, credit money, and fiat money. The value of commodity money is about equal to the value of the material contained in it. The principal materials used for this type of money have been gold, silver, and copper. In ancient times, various articles made of these metals, as well as of iron and bronze, were used as money, while among
primitive
societies commodities such as shells, beads, elephant tusks, furs, skins, and livestock served as mediums of exchange. The gold coins that circulated in the United States before 1933 were examples of commodity money because the value of the gold contained in the coin was about equal to the value of the coin.
Credit money is paper backed by promises by the issuer, whether a government or a bank, to pay an equivalent value in the standard monetary metal, such as gold or silver. Paper money that is not redeemable in any other type of money and the value of which is fixed merely by government edict is known as fiat money. This is the type of money found today in the United States in the form of both coins and dollar bills.
Credit money becomes fiat money when the issuing government suspends the convertibility of credit money into precious metal. Most fiat money began as credit money, such as the U. S. note known as the greenback which was issued during the American Civil War. Most minor coins in circulation are also a form of fiat money, because the value of the material of which
they
are made is usually less than their value as money. For example, the amount of nickel in a nickel coin today is less than its value as money.
Both the fiat and credit forms of money are generally made acceptable through a government decree that all creditors must take the money in settlement of debts; the money is then referred to as legal tender. If the supply of paper money is not
excessive
in relation to the needs of trade and industry and people feel confident that this situation will continue, the currency is likely to be generally acceptable and to be relatively stable in value. If, however, such currency is issued in excessively large volume in order to finance government needs, confidence is destroyed and it rapidly loses value. Such depreciation of the currency is often followed by formal devaluation, or reduction of the official value of the currency, by governmental decree.
The basic money of a country into which other forms of money may be converted and which determines the value of other kinds of money is called the money of redemption or standard money.(A)
Modern standards have been either commodity standards, in which either gold or silver has been chiefly used as standard money, or fiat standards, consisting of inconvertible currency paper units.(B)
Most monetary systems of the world at the present time, including those in China and the United States, are fiat systems.(C)
They do not allow free convertibility of the currency into a metallic standard, and money is given value by government fiat or edict rather than by its nominal gold or silver content.(D)
Modern systems are also described as managed currencies, because the value of the currency depends to a considerable extent on government management and policies. Internally, the monetary systems of China and the United States contain many elements of managed currency; although gold coinage is no longer permitted, gold may be owned, traded, or used for industrial purposes.
According to Paragraph 6, which of the following is NOT true of the monetary systems in the United States and China?
选项
A、The monetary systems in both countries are fiat systems.
B、Both countries have some managed elements in their monetary systems.
C、Gold is not allowed to be used for any reasons in the two countries.
D、Both countries forbid currency to be freely converted into gold.
答案
C
解析
本题为正误判断题,考查考生根据文章中阐明的信息,判断什么信息是正确的,什么信息是错误的或文章中没有提到的。题目问:根据第六段的信息,关于美国和中国的货币体系,下列哪一项是错误的?根据原文的信息,美国和中国的货币体系都是fiat system,都不允许自由将货币转换为贵重金属,都有管理的因素;但是,金子是可以有工业等用途的。不符合这些信息的只有选项C(金子不能用于任何用途)。
转载请注明原文地址:https://kaotiyun.com/show/MnfO777K
0
托福(TOEFL)
相关试题推荐
SECTION1Questions1-10Questions1-6Completetheformbelow.WriteNOMORETHANTHREEWORDSorANUMBERforeachanswer.E
Completethenotesbelow.WriteONEWORDONLYforeachanswer.Procedure(dealtwithbyprof.)Identifytopicofinteres
CompletethefollowingnotesaboutthethreecateringcompaniesBobandCindydiscuss.ParisKitchen•lackofvarietyoffood•
CircleTHREElettersA-F.WhatdoesCharlessayabouthisfriends?(A)Hemetthematonestageonthetrip.(B)Theykeptallthe
Themanwantsinformationoncoursesfor
JacksaysthatinLondonthesedays,manypeople
ChooseTWOletters,A-EWhichTWOproblemsdoSamandthetutoridentifyconcerninggroupassignments?APersonalrelationships.
Completethenotesbelow.WriteNOMORETHANTWOWORDSAND/ORANUMBERforeachanswerENVIRONMENTALCHANGEDISCUSSIONInSouthe
Completethesentencesbelow.WriteNOMORETHANTWOWORDSAND/ORANUMBERforeachanswer.Localpeopledonot______crocodiles
Whatproblemsdothespeakersidentifyforthisproject?ChooseSEVENanswersfromtheboxandwritetheletters,A-H,nexttoq
随机试题
采用整体滑动轴承的主轴的测量方法可在车床、磨床上进行,也可在V形块上进行。()
一种最为广泛采用的划分新闻单位内部部门的方法是按照()
本病西医诊断为:首选方剂为:
培土生金法的理论基础是()
患儿发生营养不良时,皮下脂肪最先消耗的部位是
等直杆受力如下图所示,其横截面积A=100mm2,则截面,m-m上的正应力为()。
中国产品要增强国际竞争力,实现由“中国制造”向“中国‘智’造”转变,其关键是:
日子一天天过去,新经理却未见作为,“他哪里是个能人,比以前经理的效率更差。”这是()“让我敬在座的每一位!如果公司是个花园,你们就是其间的珍木。”这是新经理对员工的()
所有的灰狼都是狼。这一断定显然是真的。因此,所有的疑似SARS病例都是SARS病例,这一断定也是真的。以下哪项最为恰当地指出了题干论证的漏洞?
OnVillageOfficialsWhenthejobmarketworsens,manystudentsfiguretheycan’tindulge(沉溺于)inanEnglishorahistorymaj
最新回复
(
0
)