Which of the following represents a legitimate form of currency?

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

Explanation

Among the options, a currency note is the only valid form of currency used for transactions. A promissory note is a written promise to pay, an exchange rate indicates the value between currencies, a bank cheque is an order to pay, and a financial bond is an investment instrument.

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 political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
4.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?
5.What is the standard abbreviation used to denote barrels when measuring oil?

Which of the following represents a legitimate form of currency?

Explanation

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