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Illusion [34]
3 years ago
5

Explain why it is not necessary for paper money to be backed by some commodity (eg gold) before it can have value?

Business
1 answer:
Hoochie [10]3 years ago
7 0

Explanation:

Paper money also called fiat currency is usually not backed up with a physical commodity because it is regulated by the central bank.

It effect the Government creates money supply just by signing out the directives through liquidation. The government thus maintains the value by making it the <em>standard for debt repayment</em>.

For example, the US dollars which is a paper or fiat currency would have no value if was not made a means of payment the Government.

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Your financial investments consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company.
Alexxandr [17]

Answer:

Decrease, Decrease

Explanation:

From the question we are informed about my financial investments which consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. In the case whereby the interest rates on newly-issued government bonds increase, then the price of my bonds will decrease and the price of the shares you own will decrease. Financial investment can be regarded as asset which one put money on hoping that there will be growth of the asset and the asset will appreciate to sum of money larger than the asset. Bond is an example of this, a bond can be explained as fixed income instrument which is a representation of a loan that is set up by an investor given out to a borrower. This borrower could be governmental or Corporate.

The Owners of bonds could be

debtholders as well as creditors of the firm that issue it i.e the issuer. Details of bonds is " end date"

7 0
3 years ago
What steps can be taken to build a sound financial reputation
puteri [66]

The seven steps to achieving a sound financial reputation include:

1)      Analysis of cash flow – Positive cash flow would mean having funds available for savings.

2)      Making a plan for retirement goals and other special goals.

3)      Increase retirement savings – This can be done by maximizing contributions in your retirement accounts or catch-up with missed contributions.

4)      Reduce income tax. Consult a tax professional to help you with your tax strategy.

5)      Keep pace with the current inflation rate.

6)      Manage potential risks and liabilities – Being covered with insurance can give you protection in times of unexpected risks.

7)      Consult a financial advisor to provide you with informed decisions. 

7 0
3 years ago
Read 2 more answers
6. Microsoft Word's spell checker
Helen [10]
B makes more sense it should be it
5 0
3 years ago
When a supplies internal service fund records a billing to the general fund, the journal entry in the internal service fund will
g100num [7]
It would be a spider pig 
5 0
3 years ago
An authentication token is a(n):____________
bezimeni [28]

Answer:

The correct answer is:

device the size of a credit card that contains access permission data. (A)

Explanation:

An authentication token, also known as a security token is a device used to authorize access to a network service. Tokens use the two-factor authentication method to ensure security of a system. Usually the authentication devices have access pins before access to the main tokens, and tokens are unique sets of numbers that uniquely identifies a user in a service, and they are changed frequently, usually within a 5-minute period.

5 0
3 years ago
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