6) When we put a price tag on goods and services, we are using money as a A) sto
ID: 1116239 • Letter: 6
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6) When we put a price tag on goods and services, we are using money as a A) store of value. B) medium of exchange. C) barter token. D) unit of account. E means of payment 7 When we keep part of our wealth in a bank checking account, we are using money as a because A) store of value we are holding the money to exchange for goods at a later time B) medium of exchange; we are holding the money to gain interest earned C) barter token; we are holding the money to exchange for goods at a later time D) anit of account, we are holding the money to exchange for goods at a later time E) unit of currency; we have agreed upon the value of the money with bank 8) Fiat money means A) Italian currency B) money's value does not change. C the government has decreed that something is money. D) the money can be converted into gold. E) only currency counts as money 9) Which statement most accurately captures the state of money today? A) Money today includes currency, bank deposits and checks. B) Money today includes currency and checks but not bank deposits. C Money today includes bank deposits and currency but not checks. D) Money today includes bank deposits and checks but not currency E Money today includes checks and credit cards. 10) If you use a check to pay your monthly rent, A) the check is considered money because you received something in return. B) the check is not money because it is just an instruction to your bank to make a payment. C) you have used money because the landlord accepted it as a means of payment. D) the check becomes money when it arrives at the landlord's bank. E) the check is not money because it is not part of M1. 11) An official measure of money in the United States is M1, which includes the sum of A) checkable deposits plus small time deposits. B) currency plus checkable deposits. C) currency plus credit card transactions. D) currency plus traveler's checks plus time deposits. E) currency plus traveler's checks plus checkable deposits plus small time deposits plus money market funds and other deposits.Explanation / Answer
6. d) is correct option
One of the main function of money is that it is used as a unit of account which means that a price value is added to a specific good and this helps in making the transaction vary smooth.it alsohelps in solving the problem of double coincidence of wants under barter system.
7 a)is correct option
The money is used as a store of value it means that if money is saved it can be used in future for different purposes provided there is no inflation. The biggest advantage of storing money is that it cannot decay or become valueless.
8 c) is correct option
Fiat money has been declared as a legal tender by the government but it is not backed by physical commodity .it is determined in money market by supply and demand curve.
9.a) is correct option
today money is money which can be acquired at a time. it includes currency and deposits and checks.
thanx
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