Money allows people to transfer dollars, and therefore purchasing power, into the future. This is an example of which of the 4 roles of money? correct answers Store of Value
Money provides a common unit in which all prices and listed and all debts are recorded. This is an example of which of the...
money, banking, & Monetary Policy econ 111 ||
QUESTIONS AND ANSWERS 100% ACCURATE!!
Money allows people to transfer dollars, and therefore purchasing power, into the future. This
is an example of which of the 4 roles of money? correct answers Store of Value
Money provides a common unit in which all prices and listed and all debts are recorded. This
is an example of which of the 4 roles of money? correct answers Unit of Account
Money provides convenience in that it is what we use to buy goods and services. This is an
example of which of the 4 roles of money? correct answers Medium of Exchange
When a commodity with actual intrinsic value is used as money (or to back the value of
money) in an economy, that is known as what? correct answers Commodity Money
Money with NO intrinsic value is known as what? correct answers Fiat Money
Gold, silver, salt, spices, beaver pelts, and cigarettes (in prison) are all examples of what?
correct answers Commodity Money
When an economy uses gold as currency (or backs their currency with gold), that is known as
what? correct answers The Gold Standard
Today, the US Dollar is said to be what? correct answers fiat money?
How easily an asset can be sold/exchanged for cash is known as that asset's what? correct
answers Liquidity
What is the most liquid asset? correct answers Cash (paper/coin currency)
The M1 money supply includes which of the following?
Currency (paper/coin money)
Demand Deposits (checking accounts)
Other Checkable Deposits (e.g., travelers' checks)
Savings Accounts
Certificates of Deposits (CDs)
Money Market Mutual Funds
Gold
Valuable Paintings
Stocks & Bonds correct answers 1. Currency (paper/coin money)
The M2 money supply includes which of the following?
Currency (paper/coin money)
Demand Deposits (checking accounts)
Other Checkable Deposits (e.g., travelers' checks)
Savings Accounts
In which definition of the money supply is currency (paper/coin money) that is in circulation
counted?
M1 only
M2 only
Both M1 and M2
Neither M1 nor M2 correct answers Both M1 and M2
In which definition of the money supply is currency (paper/coin money) that is INSIDE
BANK VAULTS counted? correct answers Neither M1 nor M2
In which definition of the money supply are checking accounts counted? correct answers
Both M1 and M2
In which definition of the money supply are savings accounts counted? correct answers M2
only
In which definition of the money supply are travelers' checks counted? correct answers Both
M1 and M2
In which definition of the money supply are stocks and bonds counted? correct answers
Neither M1 nor M2
In which definition of the money supply are money market mutual funds counted? correct
answers M2 only
In which definition of the money supply is gold counted? correct answers Neither M1 nor M2
Suppose you move $1000 from your checking account to your savings account.
(a) How does this impact the M1 money supply?
M1 increases
M1 decreases
M1 does not change
(b) How does this impact the M2 money supply
M2 increases
M2 decreases
M2 does not change correct answers M1 decreases
M2 does not change
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