Which of the following items can be considered money in the Canadian economy? Explain your answers by discussing the three functions of money-medium of exchange, store of value, and unit of account a. A Canadian $100 bill OA. This is not money, since it does not serve as a medium of exchange, since it is not easily recognizable or acceptable. OB. This is not money, since it does not serve as a store of value, in that price levels change and, therefore, the purchasing power of a Canadian $100 bill is not stable OC. This is money, since it can serve as medium of exchange, a store of value, and a unit of account. OD. This is not money, since it does not serve as a unit of account. b. A Visa credit card OA. This is not money, since it does not serve as a medium of exchange, since purchases cannot be made by using a credit card not even temporarily-unless a true medium of exchange is immediately available. OB. This is not money, since it is not a store of value. OC. This is not money, since it does not serve as a unit of account, in that it has no physical existence. OD. This is money, since it can serve as medium of exchange, a store of value, and a unit of account c. A well-known painting by Robert Bateman OA. This is money, since it can serve as medium of exchange, a store of value, and a unit of account OB. This is not money, since it does not serve as a unit of account or as a medium of exchange (since it is not divisible) OC. This is not money, since it does not serve as a store of value (since it cannot be stored). OD. This is not money, since it does not serve as a medium of exchange (since it is too recognizable) or a store of value (since its value is not stable)
Which of the following items can be considered money in the Canadian economy? Explain your answers by discussing the three functions of money-medium of exchange, store of value, and unit of account a. A Canadian $100 bill OA. This is not money, since it does not serve as a medium of exchange, since it is not easily recognizable or acceptable. OB. This is not money, since it does not serve as a store of value, in that price levels change and, therefore, the purchasing power of a Canadian $100 bill is not stable OC. This is money, since it can serve as medium of exchange, a store of value, and a unit of account. OD. This is not money, since it does not serve as a unit of account. b. A Visa credit card OA. This is not money, since it does not serve as a medium of exchange, since purchases cannot be made by using a credit card not even temporarily-unless a true medium of exchange is immediately available. OB. This is not money, since it is not a store of value. OC. This is not money, since it does not serve as a unit of account, in that it has no physical existence. OD. This is money, since it can serve as medium of exchange, a store of value, and a unit of account c. A well-known painting by Robert Bateman OA. This is money, since it can serve as medium of exchange, a store of value, and a unit of account OB. This is not money, since it does not serve as a unit of account or as a medium of exchange (since it is not divisible) OC. This is not money, since it does not serve as a store of value (since it cannot be stored). OD. This is not money, since it does not serve as a medium of exchange (since it is too recognizable) or a store of value (since its value is not stable)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following items can be considered money in the Canadian economy? Explain your answers by discussing the three functions of money-medium of exchange, store of value, and unit of
account
a. A Canadian $100 bill
OA. This is not money, since it does not serve as a medium of exchange, since it is not easily recognizable or acceptable.
B.
This is not money, since it does not serve as a store of value, in that price levels change and, therefore, the purchasing power of a Canadian $100 bill is not stable
OC. This is money, since it can serve as medium of exchange, a store of value, and a unit of account.
OD. This is not money, since it does not serve as a unit of account.
b. A Visa credit card
OA. This is not money, since it does not serve as a medium of exchange, since purchases cannot be made by using a credit card not even temporarily-unless a true medium of exchange is
immediately available.
OB. This is not money, since it is not a store of value.
OC. This is not money, since it does not serve as a unit of account, in that it has no physical existence.
OD. This is money, since it can serve as medium of exchange, a store of value, and a unit of account.
c. A well-known painting by Robert Bateman
OA. This is money, since it can serve as medium of exchange, a store of value, and a unit of account.
OB. This is not money, since it does not serve as a unit of account or as a medium of exchange (since it is not divisible).
OC. This is not money, since it does not serve as a store of value (since it cannot be stored).
OD. This is not money, since it does not serve as a medium of exchange (since it is too recognizable) or a store of value (since its value is not stable).
d. The balance in an interest-eaming savings account
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