A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2013 · Q41 Mark

What advantage do banknotes (paper money) have over coins (metallic money)?

AThey are cheaper to produce.

BThey are more useful for low value transactions.

CThey are the only form of legal tender.

DThey have greater intrinsic value.

✓ Correct answer

A: They are cheaper to produce.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2013 Paper 1 Variant 2, question 4.

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