True or False:
1. When the United States was on an internal gold standard, the dollar was defined as equivalent in value to a certain amount of gold.
2. When two forms of money are available, people prefer to spend the form of money that is more valuable.
3. As long as people have confidence in something's convertibility into goods and services, no further backing is necessary for it to serve as money.
4. When people lose faith in the exchangeability of pieces of paper that the government decrees as money, even legal tender loses its status as meaningful money.
5. A majority of U.S. money, whether M1 or M2, is in the form of deposits at privately owned financial institutions.
6. Money is the only medium of exchange that is generally accepted for most transactions.
7. Lending in money imposes more risks on buyers and sellers than lending in commodities.
8. Unlike in other nations, few separate commercial banks operate in the United States.