Answered: _ serves society in three functions:…

_ serves society in three functions: medium of exchange, unit of account, and store of value. a. Money b. Currency c. Barter d. A double coincidence of wants

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 24CTQ: The total amount of U.S. currency in circulation divided by the U.S. population comes out to about...

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________________ serves society in three functions: medium of exchange, unit of account, and store of value.

Money

Currency

Barter

A double coincidence of wants

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WRITE THE QUESTION NUMBER AND ANSWER USING CAPITAL LETTER ONLY. 1. Money ________. A. is always composed of coins and paper C. requires a double coincidence of wants B. loses its value as it becomes older D. is any commodity that is generally acceptable as a means of payment 2. The functions of money are A. medium of exchange and the ability to buy goods and services C. pricing, contracts, and means of payment. B. medium of exchange, unit of account, and means of payment D. medium of exchange, unit of account, and store of value 3. Matthew purchases a candy bar with his allowance. This purchase represents using money as A. a medium of exchange C. an unit of account B. a store of value D. none of the above 4. M1 includes A. currency, checking deposits and traveler's checks. C. money, checking deposits and traveler's checks B. money, stocks and bonds. D. money market mutual funds, stocks and bonds 5. The definition of M2 includes…
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Economics One of the principle functions of money is that it serves as a “store of value." This role could be described by recognizing that money is A. used as a basic unit of measuring economic activity. B. an asset that can be used for payment when buying goods/services. C. an asset that can be used as a means to hold wealth. D. None of the above answers are correct (since money in fact does not serve as a "store of value").
Gold and silver have been historically used as materials for making commodity money (coins) by many different human cultures throughout history. This was because they were difficult to obtain and less prone to rust than other metals. In other words, they could perform one of the functions of money better than other metals. Which function is that? Which function of money do gold and silver perform better than other metals? a. Unit of account b. Store of value c. Medium of exchange d. Standard of deferred payment
2. Throughout history, gold has been used as a medium of exchange. Gold ingots, gold coins, gold bars, whatever. a. Why do you think other commodities were not used as a medium of exchange for the same length of time? For example, think about why diamonds were seldom used as money. b. Why do you think paper fiat currency replaced gold? c. Is there a transaction cost problem with paper money? If so, explain how. If not, explain why not.
does not support all öf 2 4 7. Describe three ways that human specialization contributes to society's output. doing, time, and differences 8. What advantage does a money economy have over a barter economy? 9. A firm has the choice between producing product A, B, or C. In producing the products the firm faces a weekly cost of $10 for product A, $130 for product B and $200 for product C. The prices received for each product at different quantities are listed in the table below. Product Product Product Profit Profit Profit Output A C A C $3.00 $15.00 $35.00 15 1.25 9.00 10.00 (а) (b) profit? Compute the firm's profit for A, B, and C and enter this data into the table. Which product will the firm choose to produce and how much output will maximize 10.Assume that a firm can produce product A, product B, or product C with the resources it currently Assume for the purposes of this emplovs These resources cost the firm a total of $100 per week 194% D 回 Type here to search PoUp PrtScn F8 Home…
FIN Lee Dash Mid T Question Not yet answere (a) "Hyperinflation in Venezuela is the currency instability in Venezuela that began in 2016 during the country's ongoing socioeconomic and political crisis. Venezuela began experiencing continuous and uninterrupted inflation in 1983, with double-digit annual inflation rates. Inflation rates became the highest in the world in 2014 under Nicolás Maduro, and continued to increase in the following years, with inflation exceeding 1,000,000% by 2018. Economist had highlighted some potential causes of the hyperinflation include heavy money-printing and deficit spending by Venezuela government and offcourse, the loss of massive government revenue due to weak oil price which 90% of its export rely on oil industry." (Alijazeera, 2019) (i) potential causes of "Economist had highlighted some the hyperinflation include heavy money-printing and deficit spending by Venezuela government..." Using appropriate diagrams, explain how fiscal deficit cause…
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Interest rate Answer Bank increase in the price level Interest rate 10% 9 8 D ง 2 Interest rate 10% Money supply 9 8 Money supply 7 7 6 6 5 5 4 Money demand (1) 4 3 3 2 2 1 0 Money demand 0 1 2 345 6 7 8 9 10 1 2 3 4 Money (in billions) Money demand Money demand (1) 5 6 7 8 9 10 Money (in billions) Answer Bank decrease in the price level increase in output decrease in output increase in the price level
1. The use of money is more efficient than barter because the introduction of moneyTop of Form reduces the need to exchange goods. reduces transaction costs. reduces the need for economic specialization. reduces the need for other stores of value.