Buying a cup of coffee with a dollar bill represents the use of money as a d. All of the answers above are correct 2. Comparing how many dollars it takes to attend college each year to annual earnings on a job represents the use of money as a
M1 money includes all but which one of the following? Savings accounts The M1 definition of the money supply includes currency and checkable deposits The largest component of the M1 definition of the money supply is checkable deposits The M1 definition of the money supply includes: coins and currency in circulation and checkable deposits.
Which of the following provides the best explanation of why money is valuable? Money is valuable because it is scarce. Fiat money is money: accepted by law regardless of its intrinsic value. Are outstanding credit card balances counted as part of the money supply? No; money is an asset, while the credit card balances are a liability.
No; money is an asset, while the credit card balances are a liability. Thus, they are not included in the money supply figures. Buying a cup of coffee with a dollar bill represents the use of money as a: medium of exchange The use of a dollar bill to buy a concert ticket represents the function of money as a: medium of exchange
The exchange of one good for another, without the use of money, is known as: barter. Barter requires: a coincidence of wants. In order for barter to occur, traders must have a: coincidence of wants. For barter exchange to take place, there has to be a coincidence of wants.
The characteristics that money should have include: scarcity, portability, and divisibility. Gold is a perfect medium of exchange and measure of value because of its: divisibility, portability, and homogeneity.
A barter economy is one in which: goods are traded directly for other goods. Compared to a barter economy, using money increases efficiency by reducing: transaction costs. Barter is the: direct exchange of goods and services. A direct exchange of fish for corn is an example of: barter.
The primary functions of money are: a medium of exchange, a unit of account, and a store of value. Coins and dollar bills are money in the form of: currency. If something is a medium of exchange, then it: is widely accepted as payment for purchases. If something is a unit of account, then it:
The Federal Reserve System was created by an act of Congress in 1933 in an effort to end a wave of bank failures brought on the Great Depression. False. A majority of the commercial banks in the United States are not members of the Fed. True.
Credit cards are: not money. Currency consists of: coins and paper money. The three functions of money are medium of exchange, measure of value, and store of value. Though many assets can be used as a store of value, money is a particularly attractive method to store value because: it is the most liquid of all assets.
True. The Federal Reserve System is run by the President of the United States. False. The President and the Congress jointly determine the nation's monetary policies, and the Fed is required by law to implement those policies.