What does the term 'hard currency' mean?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

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A currency supported by gold or silver reserves instead of creditA currency with a value that remains relatively stable and does not vary significantlyBoth of the above descriptionsNeither of the above definitions

Explanation

Option A refers to a currency backed by precious metals like gold or silver, while option B describes a currency with stable value that doesn't fluctuate much. Therefore, the correct answer is C, as hard currency encompasses both these characteristics.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What does the term 'hard currency' mean?

Explanation

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