Economics 2281 · O Level · Money and banking

Money and banking — practice question

What is the normal reason that citizens have confidence in their country’s banknotes?

  • AThey are acceptable for trade and exchange.
  • BThey are backed by gold at the central bank.
  • CThey are convertible into the US$ or Chinese Yuan.
  • DThey are recognisable and in infinite supply.

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