[amp_mcq option1=”Alternative currency” option2=”Standard currency” option3=”Representative money” option4=”None of the above” correct=”option3″]<\/p>\n
The correct answer is: C. Representative money<\/strong>.<\/p>\n Gresham’s law states that “bad money drives out good money”. This means that when two forms of money are in circulation, the one with lower intrinsic value will tend to drive the one with higher intrinsic value out of circulation.<\/p>\n Representative money is a type of money that is not backed by a physical commodity, such as gold or silver. Instead, it is backed by the government or another institution. Representative money is considered to be “good money” because it is more stable in value than commodity money.<\/p>\n Alternative currency is a type of money that is not issued by a government or other central authority. It is often used in parallel to, or instead of, official currency. Alternative currencies are typically issued by private individuals or groups, and they may be based on a variety of different principles.<\/p>\n Standard currency is a type of money that is used as the official currency of a country. It is typically issued by the government, and it is backed by the full faith and credit of the government. Standard currency is considered to be “good money” because it is widely accepted and has a stable value.<\/p>\n None of the above is not a correct answer.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Alternative currency” option2=”Standard currency” option3=”Representative money” option4=”None of the above” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699],"tags":[],"class_list":["post-33277","post","type-post","status-publish","format-standard","hentry","category-banking-and-financial-institutions","no-featured-image-padding"],"yoast_head":"\n