WHICH OF THE FOLLOWING ARE TRUE ABOUT THE EVOLUTION OF THE PAYMEN...

100) Which of the following are true about the evolution of the payments system?

(a) The evolution of the payments system from barter to precious metals, then to fiat money, then to

checks can best be understood as a consequence of innovations that reduced the costs of

exchanging goods and services.

(b) Precious metals had the advantage of being widely accepted, being divisible into relatively small

units, and being durable, but had the disadvantage of being difficult to carry and transport from

one place to another.

(c) Fiat money, paper money that the government makes legal tender, has the advantage of being

lighter than coins, yet it can still be costly to transport because of its bulk.

(d) All of the above are true.

Answer: D

Question Status: Previous Edition