Which of the following is most critical for the maintenance of an efficient and productive economy?
A)Money backed by gold or silver
B)Steadily rising prices
C)An unlimited and unregulated supply of money
D)A properly functioning monetary system
E)A well-organized barter system

Question

Quizplus · Accepted Answer

A properly functioning monetary system is critical for maintaining an efficient and productive economy as it ensures stable prices, facilitates transactions, and allows for the efficient allocation of resources. Money backed by gold or silver is no longer used in most economies, and an unlimited and unregulated supply of money can lead to hyperinflation and economic instability. Steadily rising prices can also lead to economic instability and erode the purchasing power of individuals. A well-organized barter system may work for small-scale exchanges, but it is not practical for large-scale transactions in modern economies.

Which of the Following Is Most Critical for the Maintenance