Which of the following statements about money that is correct? A. Inflation brings a rising value of money. B. A work of art is an example of money because it can act as a store of value. C. Money is a completely stable store of value. D. Without a medium of exchange, goods and services must be exchanged directly for other goods and services

Which of the following statements about money that is correct? A. Inflation brings a rising value of money. B. A work of art is an example of money because it can act as a store of value. C. Money is a completely stable store of value. D. Without a medium of exchange, goods and services must be exchanged directly for other goods and services

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter17: Stabilizing The National Economy

Section: Chapter Questions

Problem 8AA

See similar textbooks

Similar questions

Which of the following statements about money that is correct? A. Credit cards and debit cards are examples of money. B. Inflation brings a rising value of money. C. Without a medium of exchange, goods and services must be exchanged directly for other goods and services. D.
Economics 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").
Which of the following is one of the most important benefits of money in a modern economy? A. Money encourages people to produce all of their own goods and therefore increases economic stability. B. Money allows for the accumulation of wealth. C. Money makes exchange easier, leading to more specialization and higher productivity. D. Money allows for the exchange of goods and services. E. Money is a unit of account which makes it easier to value all goods and services in dollars. QUESTION 9 Labor productivity is A. the quantity of capital one worker can produce in one day. B. the quantity of output produced by one worker or by one hour of work. C. the quantity of output produced in one hour by several workers. D. the quantity of capital produced by one worker or by one hour of work. E. the quantity of output produced in one hour by one machine.
Which of the following statements represent a use of money that is not consistent with its definition? "I got some money at the ATM with my debit card," "I just used my credit card as money to buy a new television." "I wrote a check on my deposit account to pay for dental services." "I will accept either currency or gold as money for the purchase of my house."
Which 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.
Gold 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 payment
When the interest rate falls , other things remaining the same, what change occurs in the market for money? The opportunity cost of holding money _______ and _______. A. rises ; the demand for money decreases B. rises ; the quantity of money demanded decreases C. falls ; the quantity of money demanded increases D. falls ; the demand for money increases
Fiat money isa. a type of money with intrinsic value.b. a type of money set by government decree.c. any asset used as the medium of exchange.d. any asset used as the unit of account.
Only 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..
Which of the following statements is false A. Money is not a comsumption or a capital good B. An increase in the money supply does not confer a general benefit on society C. Economic theory cannot tell us generally which groups benefit and which groups are injured by inflation D. Economic theory cannot tell us the supply of money that is proper for an economy to have
#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 happens to the quantity of money when you take cash from an ATM? The quantity of money ______. A. doesn't change because the quantity of currency doesn't change B. decreases because both vault cash and your bank deposit decrease C. increases because currency increases D. doesn't change because your bank deposit decreases and currency increases by the same amount