Which of the following statements is false?
A) Round stones with holes in the centre can serve as money.
B) Money eases the process of exchanging goods and services in a modern economy.
C) Money serves as a measure of value only when it is backed by gold or silver.
D) Money is used as a measure of the relative value of goods and services in an economy.

Question

Quizplus · Accepted Answer

This statement is false. While gold and silver were historically used as a backing for currency, modern fiat currency is not backed by any physical commodity. Money serves as a measure of value based on market demand and the overall strength of the economy.

Which of the Following Statements Is False