Which statement is not correct? A. Money is a legal tender since the law requires a lender to accept money in the repayment of debts. B. Money as a store of value can be held and exchanged later for goods and services. C. In its role as a medium of exchange, money makes exchanges easier by reducing transactions costs. D. The demand for money represents the idea that there is a positive relationship between the interest rate and the quantity of money demanded. E. none of the above

Which statement is not correct? A. Money is a legal tender since the law requires a lender to accept money in the repayment of debts. B. Money as a store of value can be held and exchanged later for goods and services. C. In its role as a medium of exchange, money makes exchanges easier by reducing transactions costs. D. The demand for money represents the idea that there is a positive relationship between the interest rate and the quantity of money demanded. E. none of the above

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 2SQ

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Question

Which statement is not correct?

A. Money is a legal tender since the law requires a lender to accept money in the repayment of debts.

B. Money as a store of value can be held and exchanged later for goods and services.

C. In its role as a medium of exchange, money makes exchanges easier by reducing transactions costs.

D. The demand for money represents the idea that there is a positive relationship between the interest rate and the quantity of money demanded.

E. none of the above

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1.Money is a means of lowering the transaction costs of making exchanges. Do you agree or disagree? Explain your answer.