Which of the following statements is true? O The necessary condition required for money to function as a medium of exchange is that it also needs to be a store of value. O The hours of labor that go into producing a product are a better unit of account than paper money. OOne of the limitations of using money is that it does not allow for the transfer of purchasing power into the future. O When money is used as a yardstick to describe the price of various goods and services, it serves as a store of value.

Which of the following statements is true? O The necessary condition required for money to function as a medium of exchange is that it also needs to be a store of value. O The hours of labor that go into producing a product are a better unit of account than paper money. OOne of the limitations of using money is that it does not allow for the transfer of purchasing power into the future. O When money is used as a yardstick to describe the price of various goods and services, it serves as a store of value.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: The Monetary System

Section: Chapter Questions

Problem 2QR

See similar textbooks

Similar questions

Fiat money has Select one: a. value, because it can be redeemed for gold by the central bank. O b. little to no intrinsic value but is backed by the quantity of gold held by the central bank. C. a great intrinsic value that is independent of its use as money. O d. little to no intrinsic value and is authorized by the central bank or governmental body. Clear my choice Fini
The characteristic of money as a store of value implies: a. Money will remain valuable from one day to the next O b. None of the Above O C. Money allows us to quote prices and record debt O d. Money is acceptable as payment for goods and services
Which of the following is NOT a function of money? O a. A unit of account O b. A store of value O c. An interest-earning asset O d. A medium of exchange
If Canadian Tire issues its own "money" and it becomes generally accepted by people in paying for goods and services at other stores, then we would consider it to 84 be ca htt O A. legal money because Canadian Tire is a Canadian incorporated company. O B. a form of fiat money. O C. Mlegal money because the government has not issued it O D. a form of fiduciary money As hav
Suppose the MB is $100 bilion, deaired reserves are 10% and the curreney-deposit ratio is 10% (anks hold no exces reerves in this example). a) What is the money supply? O n00 bilon O $1000 bilion 5500 bion none on the atove
. Three goods are produced in an economy by three individuals:Good ProducerApples Orchard ownerBananas Banana growerChocolate ChocolatierIf the orchard owner likes only bananas, the bananagrower likes only chocolate, and the chocolatier likesonly apples, will any trade between these three personstake place in a barter economy? How will introducingmoney into the economy benefit these three producers?
The value of money depends on which of the following factors? O a. The durability of the bills O b. The weight of the coin Ос. The price level O d. The previous metal used to mint the coin
An increase in the demand for non-monetary gold causes the money to O demand for; increase supply of; increase demand for; decrease O supply of; decrease
What makes barter incapable of doing credit payments? O a. Coincidence of wants O b. Common unit of measure O c. Impossibility of future payments O d. Difficulty in storing
What do economists mean by the "time value of money"? O A. The way that the value of a payment changes depending on when the payment is received. B. The fact that it takes time to make money. OC. The fact that money has value only if you have the time to enjoy it.
The changes in bank regulations expand the availability of credit cards so people need to hold less cash. Select one: O a. money supply decrease, money demand decrease, interest rate increase O b. money supply increase, money demand unchanged, interest rate decrease O c. money supply increase, money demand increase, interest rate decrease O d. money supply unchanged, money demand decrease and interest rate decrease O e. money supply decrease, money demand unchanged, interest rate increase
Last week Courtney went shopping at her local Old Navy store and saw some flannel shirts. Her initial reaction was, "Wow--those are cute." Then she looked at the price and thought, "No way am I going to pay $35 for one of those shirts." In this situation, the dollar is performing which of the following functions of money? Select one: O A. Standard of deferred payment. O B. Medium of exchange. OC. Standard of value. O D. Unit of account. O E. Store of value.