MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 14, Problem 7SQ
To determine
The true statement about money.
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Why are credit cards not included in the money supply even though they can be used easily for transactions?
A. Because credit cards are not always 100% reliable.
B. Because credit cards are not physical money.
C. Because there are other more efficient methods of money supply.
D. Because the credit card company is effectively making you a loan..
#27. Identify two examples of commodity money.
#28. The U.S. dollar is an example of fiat money. What is fiat money?
#29. Why can fiat money be successfully used as a currency despite the fact that it has not intrinsic value backing it up?
What are the three functions that a commodity must fulfill to be useful as money?
13.Why can’t food be used as a form of money?
14.Money is what money does. Explain.
Chapter 14 Solutions
MACROECONOMICS FOR TODAY
Ch. 14.1 - Prob. 1GECh. 14.1 - Prob. 2GECh. 14.4 - Prob. 1YTECh. 14.5 - Prob. 1YTECh. 14 - Prob. 1SQPCh. 14 - Prob. 2SQPCh. 14 - Prob. 3SQPCh. 14 - Prob. 4SQPCh. 14 - Prob. 5SQPCh. 14 - Prob. 6SQP
Ch. 14 - Prob. 7SQPCh. 14 - Prob. 8SQPCh. 14 - Prob. 9SQPCh. 14 - Prob. 10SQPCh. 14 - Prob. 1SQCh. 14 - Prob. 2SQCh. 14 - Prob. 3SQCh. 14 - Prob. 4SQCh. 14 - Prob. 5SQCh. 14 - Prob. 6SQCh. 14 - Prob. 7SQCh. 14 - Prob. 8SQCh. 14 - Prob. 9SQCh. 14 - Prob. 10SQCh. 14 - Prob. 11SQCh. 14 - Prob. 12SQCh. 14 - Prob. 13SQCh. 14 - Prob. 14SQCh. 14 - Prob. 15SQCh. 14 - Prob. 16SQCh. 14 - Prob. 17SQCh. 14 - Prob. 18SQCh. 14 - Prob. 19SQCh. 14 - Prob. 20SQ
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Similar questions
- Which 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_forwardWhich of the following is money? A. A check is money because while it is in circulation the quantity of money increases by the amount of the check. B. Deposits are money, checks are not money, and credit cards are not money. C. A credit card is money because it allows you to take a loan at the instant you buy something. D. Currency is money and credit cards are money because they are means of payment, but deposits are not money.arrow_forwardBitcoin is not a suitable form of money because its price is highly variable. Which one of the functions of money does this violate? A. Store of value B. Medium of exchange C. Unit of accountarrow_forward
- Which of the following statements is true?a. Money must be relatively ((scarce'' if it is to have value.b. Money must be divisible and portable.c. Ml is the narrowest definition of money.d. All of the answers are correct.arrow_forwardWhich of the following is NOT included as M1 money? A. Currency B. Travelers checks C. Demand deposits D. All of the above are included as M1 moneyarrow_forwardIf 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 goldarrow_forward
- 24. Fiat money is any money that Group of answer choices a. Earns interest when deposits in banks. b. Is money because the government says so and the people accept it. c. Has a greater face value than its purchasing power. d. Exists in the form of coin or currency. e. Is issued by the Department of the Treasury.arrow_forwardIf a society chooses fiat money as its money form, it __________.Group of answer choices A. will need to make sure the currency is convertible into gold B. must make sure there is an illiquid money supply C. should estimate any central bank D. must be particularly vigilant about controlling the quantity of moneyarrow_forwardChoose the correct answer 1. The neutrality of money refers to the idea that: a) a change in money supply has no impact on output over any time period. b) a change in money supply has no short run impact on output. c) the real quantity of money is constant in the long term. 2. a) only the central bank can create money. b) commercial banks can create credit. c) all UK currency is backed by central bank holdings of gold. 3. a) UK currency is a commercial bank liability. b) UK currency is a Bank of England liability. c) UK currency is a central bank asset.arrow_forward
- Which 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_forwardOnly one of the following is part of the money supply. Which is it? Select one: A. Gold. B. Available credit on people's credit cards. C. Currency in a bank's vault. D. Demand deposits..arrow_forwardWhich of the criteria for being used as money in a modern society does each of the following not meet? The criteria are (a) not rare, (b) indivisible into smaller units, (c) not durable, (d) doesn’t maintain its value over time, (e) not portable, (f) not expandable, (g) too easy to counterfeit. Items that could not be used for money. Example. Ice Cube. Why not? (c) not durable Bowling Ball. Why not? Rare gems. Why not? Whiskey. Why not? Sand. Why not? Cigarette. Why not?arrow_forward
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