8. The evolution of the payment system from barter to golds and silvers, then to paper money, then to checks, can be understood as a consequence of A) government regulations designed to increase the efficiency of the payment system. B) government regulations designed to promote payment system security. C) innovations that reduce the cost of exchanging goods and services. D) competition between companies to make it easier for customers to buy their products. 9. is the narrowest monetary aggregate reported by the central bank (The Fed). A) MO B) M1 C) M2 D) M3 10. An increase in the monetary base that affects currency is while the increase that affects deposits is A) multiplied; multiplied B) not multiplied; multiplied C) multiplied; not multiplied D) not multiplied; not multiplied

8. The evolution of the payment system from barter to golds and silvers, then to paper money, then to checks, can be understood as a consequence of A) government regulations designed to increase the efficiency of the payment system. B) government regulations designed to promote payment system security. C) innovations that reduce the cost of exchanging goods and services. D) competition between companies to make it easier for customers to buy their products. 9. is the narrowest monetary aggregate reported by the central bank (The Fed). A) MO B) M1 C) M2 D) M3 10. An increase in the monetary base that affects currency is while the increase that affects deposits is A) multiplied; multiplied B) not multiplied; multiplied C) multiplied; not multiplied D) not multiplied; not multiplied

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 3PA

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3. The kinds of money Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. Until 2003, the year in which the U.S. government banned smoking in federal penitentiaries, cigarettes were the preferred medium of exchange among prisoners. One important difference between using cigarettes and using dollars as money is that have intrinsic value. Cigarettes are an example of money.
1. Describe how money contributes to economic activity and allows for a more complex society than barter does.
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