Answered: Which of the following is not one of…

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 Account

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Imagine you have R1,000 in cash, and you deposit this money into a saving account at a bank. What…

A: Money is something or any commodity that is widely accepted by general public in medium of exchange.…

Q: What are the THREE basic functions of money? as a commodity as a store of value as a barrier to…

A: Money - It is a legal tender accepted as payment for goods and services. It is accepted for…

Q: in New Orleans, make fixed monthly Sustaining members of public radio stations, such as WRKF in…

A: A monetary donation alludes to a gift given in the type of money to charities, associations,…

Q: Is demand deposit and current deposit at bank same

A: The bank is the financial institution which deals primarily in the accepting and mobilizing the…

Q: Give typing answer with explanation and conclusion Could each of the following items potentially…

A: Money is used as the currency for buying goods and services. Money replaced the barter system.

Q: 3) Nafisa buried money in her garden to use in an emergency. State, which of the three functions of…

A: Money is any item that is popularly recognized as a means of exchange for buying goods, repaying…

Q: Gold and silver have been historically used as materials for making commodity money (coins) by many…

A: The functions of money can be sub-divided into primary functions and secondary functions. The…

Q: Using money to pay debts in the future appeals to its ability to function as a . a. medium of…

A: Money function: First, money acts a medium of exchange. It acts as an intermediate to buy or sell…

Q: What would be the first loan in the table if the reserve ratio is 10%? A/Loans 800, total Deposit…

A: Answer: Correct option: option (C) Explanation: Banks accept deposits of 1000 and it also creates a…

Q: "It separated the act of sale and purchase" Which function of money is reflected in this statement?

A: We know well that money plays for important and crucial role in any Tommy of any country which are…

Q: In the POW camps during World War II, cigarettes fulfilled the functions of money because they acted…

A: Money is a widely accepted transaction prices hold value over a time period. The value of money is…

Q: Which property is consistent with the functions of money? Unit of account medium of…

A: Money has some important functions which are essential for survival of economy.

Q: Question 2 (1 point) Juanita runs a bakery and each morning she makes sure her register is stocked…

A: Money has a lot of functions. Unit of account means that all measurements can be done in terms of…

Q: Consider the following data. Value (S bilions) 657 3.094 1.546 Item Currency Savings and money…

A: Money refers to anything that can be used as a medium of exchange. It should be widely accepted.…

Q: What are two advantages and one disadvantages of using cash as THE MAIN medium of exchange?

A: Medium of exchange: -any item that can be accepted as an exchange for goods and services serves the…

Q: Give 3 advantages of using checks to pay for goods and services instead of physical coins and…

A: Answer - Advatages of using check - 1. Easy to carry - The checks are much easier to carry compare…

Q: Imagine you have R1,000 in cash, and you deposit this money into a saving account at a bank. What…

A: Money refers to something or any commodity that is widely accepted by general public in medium of…

Q: Abigail sets aside $1,000 per month for here retirement years. This function of money is called: O…

A: Money is an economic entity that serves as a universally accepted medium of exchange in a…

Q: In many casinos ,a person buys chips to use for gambling.Within the casino 'swalls, customers often…

A: ANS The four primary functions of money are: Medium of exchange A standard of account Store of…

Q: What are some measures to remove the defects of Indian money market?

A: Introduction - When compared to advanced markets such as New York and London Money Markets, the…

Q: How to calculate the value of deposits when given excess reserves and reserve ratio

A: In an economy, differ ratios are calculated to analyze economic condition and the division of a…

Q: Nafisa buried money in her garden to use in an emergency. State, which of the three functions of…

A: Money is something that is accepted as payment for goods and services. It is also a legal tender…

Q: Which of the following is considered least liquid? O a) currency bills O b) Checking account O c)…

A: In economics, liquidity is defined as the ability of an asset to be turned into cash. An asset is…

Q: Trace the development of money (a) barter (b) commodity and (c) fiat money, explain the role of…

A: In a transactional economy, money is an economic unit that acts as a commonly acknowledged method of…

Q: Which of the following is a function of money? a. a unit of account b. medium of exchange c. a store…

A: ANS: d.All of the above are correct Money has various functions they can be broadly classified…

Q: Which function of money is best served by bitcoin? A. A medium of exchange B. A unit…

A: The bid=t coin is accepted to exchange for certain goods and services. This indicates the medium of…

Q: - Which of the following is not a function of money? Medium of exchange Unit of Account Resource…

A: Money has three essential capacities. It is a mechanism of trade, a unit of record, and a store of…

Q: What is the two main money functions

A: Money is a value system that permits things to be exchanged in an economy. Using money, as opposed…

Q: What are the functions of money?

A: The functions of money are: 1. Store of value 2. Medium of exchange 3. Unit of account 4. A…

Q: What are the basic functions of money in the economy, and how do these functions help facilitate…

A: Cash plays an essential part in any economy., however understanding its fundamental capabilities can…

Q: Calculate M2 if :- M1 = $7500 million Saving deposit with post office Savings bank = $3300 million

A: The data presented in the question above is:- M1 = $7500 million Savings deposit with post office…

Q: Calculation of M1 $ billions Currency $1,271.8 Traveler’s checks $2.9 Demand deposits and other…

A: Given the information: Currency = $1271.8 Traveler's check = $2.9 Demand deposits = $1713.5

Q: Consider the three functions of money discussed in class: medium of exchange, unit of account, and…

A: A medium of exchange is an intermediate tool or system that allows two parties to sell, buy, or…

Q: Please help me with 4 and 7. Thank you 4. Show (using the credit/debit tables) how each of the…

A: 4) Balance of Payments Entries:a. U.S. Airplane Manufacturer Imports PartsDescription: A U.S.…

Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

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 Account

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Considering the criteria of being a medium of exchange, a unit of account and a store of value, which one/s of the following items potentially serve as money? A MasterCard A Peercoin Salt Coffee cups
Discuss the various functions of money
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
If Tiffany redeemed a bond that earned 5% interest over the past 10 years, which function of money was BEST represented in this scenario? A. medium of exchange B. store of value C. standard of value D. unit of account
Assume that the currency-deposit ratio is 0.5, the required reserve ratio is 0.1, and the excess reserves to deposit ratio is 0.15. If the monetary base is $2 trillion, fınd (a) the amount of currency in circulation in billions of dollars (b) required reserves in billions of dollars (c) excess reserves in billions of dollars.
Using money to pay debts in the future appeals to its ability to function as a a. medium of exchange b. store of value c. unit of account d. all of the above. e. none of the above.
A space colony on the moon initially used moon rocks as currency, but they became heavy and cumbersome to use. Now most moon citizens store their rocks in a guarded storage facility and receive receipts they can trade for goods and services and/or exchange back for moon rocks at any time. All receipts stand for moon rocks actually held in storage. If there are 10 million moon rocks stored, there will be exactly 10 million moon rocks' worth of receipts circulating. In other words, the moon's currency is: (We'll use this information again in the next question.) A. commodity money B. fully backed C. legal tender D. fiat money
Use the table to calculate M1 and M2. Currency 1050 Savings deposits 5500 Small-denomination time. 1000 deposits Traveler's checks 10 Non-institutional money 800 market funds Institution-only money market 1800 funds Transactions deposits 1140 M1 = A ; M2 = = A/ (write numbers only, no commas)
8:30 1 19) Which of the following is a function that money serves? A) medium of exchange B) unit of value C) store of account D) All of the above are correct.
If an individual moves money from a money market mutual fund to currency, Select one: a. M1+ stays the same and M2+ stays the same b. M1+ increases and M2+ decreases C. M1+ stays the same and M2+ increases d. M1+ increases and M2+ stays the same
Match each scenario to the function of money that it refers to. A. Angel a buyer for GoCamping store, reviews a price list of various camping supplies before placing an order B. Tonya plans to use money accummulated in his bank account over several years to put a down payment on a house C. Ariel sold 150 cases of wine last week to a local bar 1. Unit of account 2. Medium of exchange 3. Store of value
Money serves 4 functions. Which of the following is incorret a- money serving b-unit of account c- medium of exchange d- store of value