ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Aztec in Central America used cacao beans, from which chocolate is made, as money. Prices varied from a few beans for a piece of fruit to several thousand for an enslaved person. Aztec merchants had to take care when selling expensive items. Payment usually came stored in sacks, and the sacks might contain counterfeit money-bean husks filled with mud. Based on the passage, what type of money did the Aztec use?
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specie
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fiat money
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legal tender
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commodity money
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Explanation:
Detailed explanation-1: -In the short-run, an increase in the money supply decreases the nominal interest rate, which increases investment and real output.
Detailed explanation-2: -In India, M3 is the most commonly used measure of money supply.
There is 1 question to complete.