Which of the following is NOT a function of money? A. A medium of exchange B. A measure of inflation C. A store of value D. A unit of account Which function of money is best served by bitcoin? A. A medium of exchange B. A unit of account C. A store of value The ease at which an asset can be converted into a medium of exchange is known as A. Inflation B. Profitability C. Liquidity D. Wealth Economists have documented Pacific island economies in which large rocks and boulders were used as money. While this may work for a group of people who only transact with others on the island, the rocks would not be a useful form of money in the world economy because: A. Large rocks are not easily standardized B. Large rocks are not easily divisible C. Large rocks are not easy to carry D. All of the above are true In the mid 1800's, grain sellers in Chicago would deliver their grain to warehouses and receive a paper receipt that represented their claim on the grain in storage. These receipts became so widely used that grain traders began to use them as money, and they would use the warehouse receipts to settle debts and as collateral to secure short-term loans. Despite their widespread use as a form of currency, the warehouse receipts were not fiat money because: A. Grain is a commodity, so the receipts were commodity money and not fiat money B. The receipts were not legal tender formally recognized by a government The money in your personal checking account is counted as: A. Neither M1 nor M2 money B. M1 money only C. M2 money only D. M1 and M2 money When our children were young, we saved their personal funds like cash birthday gifts in savings accounts at our local bank. These funds were counted as: A. Neither M1 nor M2 money B. M1 money but not M2 money C. M2 money but not M1 money D. Both M1 and M2 money Which of the following is NOT included as M1 money? A. Currency B. Travelers checks C. Demand deposits D. All of the above are included as M1 money Which group in the federal goverment is responsible for counting M1 and M2 money amounts? A. Department of the Treasury B. US Mint C. Internal Revenue Service D. Federal Reserve Which problem associated with barter transactions is reduced when people conduct these transactions with money? A. Local sales taxes B. Deflation C. Transaction costs D. Inflation
Which of the following is NOT a function of money?
| A. |
A medium of exchange |
|
| B. |
A measure of inflation |
|
| C. |
A store of value |
|
| D. |
A unit of account |
Which function of money is best served by bitcoin?
| A. |
A medium of exchange |
|
| B. |
A unit of account |
|
| C. |
A store of value |
The ease at which an asset can be converted into a medium of exchange is known as
| A. |
Inflation |
|
| B. |
Profitability |
|
| C. |
Liquidity |
|
| D. |
Wealth |
Economists have documented Pacific island economies in which large rocks and boulders were used as money. While this may work for a group of people who only transact with others on the island, the rocks would not be a useful form of money in the world economy because:
| A. |
Large rocks are not easily standardized |
|
| B. |
Large rocks are not easily divisible |
|
| C. |
Large rocks are not easy to carry |
|
| D. |
All of the above are true |
In the mid 1800's, grain sellers in Chicago would deliver their grain to warehouses and receive a paper receipt that represented their claim on the grain in storage. These receipts became so widely used that grain traders began to use them as money, and they would use the warehouse receipts to settle debts and as collateral to secure short-term loans. Despite their widespread use as a form of currency, the warehouse receipts were not fiat money because:
| A. |
Grain is a commodity, so the receipts were commodity money and not fiat money |
|
| B. |
The receipts were not legal tender formally recognized by a government |
The money in your personal checking account is counted as:
| A. |
Neither M1 nor M2 money |
|
| B. |
M1 money only |
|
| C. |
M2 money only |
|
| D. |
M1 and M2 money |
When our children were young, we saved their personal funds like cash birthday gifts in savings accounts at our local bank. These funds were counted as:
| A. |
Neither M1 nor M2 money |
|
| B. |
M1 money but not M2 money |
|
| C. |
M2 money but not M1 money |
|
| D. |
Both M1 and M2 money |
Which of the following is NOT included as M1 money?
| A. |
Currency |
|
| B. |
Travelers checks |
|
| C. |
Demand deposits |
|
| D. |
All of the above are included as M1 money |
Which group in the federal goverment is responsible for counting M1 and M2 money amounts?
| A. |
Department of the Treasury |
|
| B. |
US Mint |
|
| C. |
Internal Revenue Service |
|
| D. |
Federal Reserve |
Which problem associated with barter transactions is reduced when people conduct these transactions with money?
| A. |
Local sales taxes |
|
| B. |
Deflation |
|
| C. |
Transaction costs |
|
| D. |
Inflation |
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