ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
If raw whole eggs of uniform size were used as money, which of the following functions of money would be the hardest for this to satisfy?
Select one:
a. store of value
b. unit of account
c. medium of exchange
d. certificate of gold
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- Which of the following is not one of the three functions of money? Medium of Exchange Credit for Consumption Store of Value O Unit of Accountarrow_forwardWhich of the following is are the three jobs of money? (Check all that apply) A. Medium of exchange B. Standard of Value C. Divisible D. Store of Value E. Portablearrow_forwardIn a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? Select the two correct answers. portability uniformity medium of exchange unit of account store of valuearrow_forward
- Money functions as a medium of exchange because it is readily exchangeable for other goods. A) True B) Falsearrow_forwardWhich of the following is a reason that we do not hold all of our money in cash? Select one: a. To increase transaction costs b. To protect our ability to purchase goods spontaniously. C. To earn interest, d. To reduce transaction costs.arrow_forwardThe functions of money include the following: Note: choose up to four (4). If you check more than four, 1 point will be taken for each additional choice. A. unit of account B. standard of deferred payment C. medium of exchange D. commodity money E. fiat money F. store of valuearrow_forward
- Question 5 Homework ⚫ Answered ⚫ Due Jul 24th, 11:50 PM MONEY IN THE ECONOMY ($billions) Currency held by the public = $1,000 Demand Deposits = $3,000 Other Liquid Deposits = $12,000 Small Denomination Time Deposits = $500 Retail Money Market Funds = $1,500 Use the information above to answer this item. If depositors move $100 billion from demand deposits to small denomination time deposits, then: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C the value of M1 stays the same, the value of M2 increases by $100 billion, and the system becomes less liquid. the value of M1 decreases by $100 billion, the value of M2 stays the same, and the system becomes less liquid. the value of M1 decreases by $100 billion, the value of M2 increases by $100 billion, and the system becomes less liquid. × Your answer d the value of M1 stays the same, the value of M2 stays the same, and the liquidity of the system does not change.arrow_forwardRecall the three main roles of money, unit of account, store value, and medium of exchange. Now consider the following pairs of items that might serve as money. For both pairs, clearly indicate which item is generally superior as a type of money and indicate which role of money (one) for which it is most superior to the other item in the pair. Peaches versus raisins Stainless steel 1/8 pound (weight) cubes versus large pieces of granitearrow_forwardersonal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. U.S. prisoners used cigarettes as a medium of exchange until smoking was banned in U.S. prisons in 2003. After 2003, prisoners looked to other items on the commissary menu to facilitate exchange. In 2008, the Wall Street Journal reported that energy bars had caught on as money in some U.S. prisons. One important difference between using energy bars and using dollars as money is thatenergy bars have intrinsic value. Energy bars are an example ofcommodity money.arrow_forward
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