Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 27, Problem 1MCQ
To determine
To find:
The option that correctly explains the meaning of money.
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Students have asked these similar questions
1. Describe how money contributes to economic activity and allows for a more complex society than barter does.
Which among the following statements is not
true about Savings bank deposits?
It is meant for small income groups
O Interest is allowed on the credit balance
of this account.
O It promotes the habit of thrift among
depositors
O There is no restriction on the amount
that can be withdrawn at a particular
time
WRITE THE QUESTION NUMBER AND ANSWER USING CAPITAL LETTER ONLY.
1.
Money ________.
A.
is always composed of coins and paper
C. requires a double coincidence of wants
B.
loses its value as it becomes older
D. is any commodity that is generally
acceptable as a means of payment
2.
The functions of money are
A.
medium of exchange and the ability to buy
goods and services
C. pricing, contracts, and means of
payment.
B.
medium of exchange, unit of account, and
means of payment
D. medium of exchange, unit of account,
and store of value
3.
Matthew purchases a candy bar with his allowance. This purchase represents using money
as
A.
a medium of exchange
C. an unit of account
B.
a store of value
D. none of the above
4.
M1 includes
A.
currency, checking deposits and traveler's
checks.
C. money, checking deposits and traveler's
checks
B.
money, stocks and bonds.
D. money market mutual funds, stocks and
bonds
5.
The definition of M2 includes…
Chapter 27 Solutions
Foundations of Economics (8th Edition)
Ch. 27 - Prob. 1SPPACh. 27 - Prob. 2SPPACh. 27 - Prob. 3SPPACh. 27 - Prob. 4SPPACh. 27 - Prob. 5SPPACh. 27 - Prob. 6SPPACh. 27 - Prob. 7SPPACh. 27 - Prob. 8SPPACh. 27 - Prob. 9SPPACh. 27 - Prob. 10SPPA
Ch. 27 - Prob. 11SPPACh. 27 - Prob. 12SPPACh. 27 - Prob. 13SPPACh. 27 - Prob. 1IAPACh. 27 - Prob. 2IAPACh. 27 - Prob. 3IAPACh. 27 - Prob. 4IAPACh. 27 - Prob. 5IAPACh. 27 - Prob. 6IAPACh. 27 - Prob. 7IAPACh. 27 - Prob. 8IAPACh. 27 - Prob. 9IAPACh. 27 - Prob. 10IAPACh. 27 - Prob. 11IAPACh. 27 - Prob. 1MCQCh. 27 - Prob. 2MCQCh. 27 - Prob. 3MCQCh. 27 - Prob. 4MCQCh. 27 - Prob. 5MCQCh. 27 - Prob. 6MCQCh. 27 - Prob. 7MCQCh. 27 - Prob. 8MCQ
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Similar questions
- If the currency is backed by a local, consumable product, then the following benefit is there- Select one: a. substantial storage cost b. volatile price. c. volatile production d. All of these e. it would provide a way to control the volume of money createdarrow_forwardAn account issued by banks yielding a market rate of interest with a minimum balance requirement and a limit on transactions is a Select one: a. certificate of deposit. b. money market deposit account. c. savings deposit. d. time deposit.arrow_forwardQuestion 2 If you have a credit card limit of $1,000, you should never carry a balance of more than $800. True. False, Question 3 Credit cards are expensive ways to borrow money. True. False. Sign-i Your Save and Quit Your interest rate on your loan with the credit card company can go up big time if DELL & $ 4. 2# 3 y earrow_forward
- 1Money is created when A. a depositor deposits money at the bank. B. a bank grants a loan to a customer. C. someone lends money to a friend or a family member. D. people use money to pay for stuff they buy from one another.arrow_forward16. A debit card differs from a credit card in that Question 16 options: a) a credit card is a loan while for a debit card purchase, payment is made immediately. b) a debit card is a loan while for a credit card purchase, payment is made immediately. c) a debit card is a long-term loan while a credit card is a short-term loan. d) a credit card is a long-term loan while a debit card is a short-term loan.arrow_forwardGold and silver have been historically used as materials for making commodity money (coins) by many different human cultures throughout history. This was because they were difficult to obtain and less prone to rust than other metals. In other words, they could perform one of the functions of money better than other metals. Which function is that? Which function of money do gold and silver perform better than other metals? a. Unit of account b. Store of value c. Medium of exchange d. Standard of deferred paymentarrow_forward
- Money is any asset that is generally accepted as payment for goods, services, wages, and other payments to inputs. This function of money is called O unit of account. O store of value O standard of deferred payment. O medium of exchange.arrow_forward2. Throughout history, gold has been used as a medium of exchange. Gold ingots, gold coins, gold bars, whatever. a. Why do you think other commodities were not used as a medium of exchange for the same length of time? For example, think about why diamonds were seldom used as money. b. Why do you think paper fiat currency replaced gold? c. Is there a transaction cost problem with paper money? If so, explain how. If not, explain why not.arrow_forwardEconomics One of the principle functions of money is that it serves as a “store of value." This role could be described by recognizing that money is A. used as a basic unit of measuring economic activity. B. an asset that can be used for payment when buying goods/services. C. an asset that can be used as a means to hold wealth. D. None of the above answers are correct (since money in fact does not serve as a "store of value").arrow_forward
- 1. The use of money is more efficient than barter because the introduction of moneyTop of Form reduces the need to exchange goods. reduces transaction costs. reduces the need for economic specialization. reduces the need for other stores of value.arrow_forward49. Why is 'fiat money,' such as paper cash, not actually money? (A) It is not gold. (B) It is not a medium of exchange. (C) It is not a unit of account. (D) It is not a store of value.arrow_forward1. Please answer letter D,E and Farrow_forward
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