Governments supply virtually all the coin and paper money that is used as a medium of exchange in an economy. Economists refer to coin and paper money together as

Question

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Economists commonly use the term "currency" to refer to both coin and paper money. The other options, such as "convertible cash" and "total checking deposits," do not accurately describe coin and paper money. "Base money" is a technical term that incorporates both currency and commercial banks' reserves at the central bank, and is not specific to coin and paper money.

Governments Supply Virtually All the Coin and Paper Money That