true or false explain 1. when paul pays for a new bicycle with a check, he is us
ID: 1211540 • Letter: T
Question
true or false explain
1. when paul pays for a new bicycle with a check, he is using money as a unit or standard of account , true or false explaing
2. B-Mart is updating their price list and therefore using money as a unit or standard of account.
3. Joan is putting money is her saving accont to use later for a down payment on a condo in1 year- she is using money as a medium of payment.
4. Sam writes a check to pay for his utility bill- he is using money as a store of value
5. erin lives in Argentina and is buying gold as soon as she recevies her salary. She does so because inflation is high and the Argentina Peso is not a good store of value.
6. Demand or checkable deposits are include in M1 but not in M2
7.Alice deposits cash in the amount of $1000 into her checking account at Nank of America, then M1 would increse by 1000
8. when Alice transfers $500 from her checking accont to her saving account, M2 increses by $500
9,when Alice transfers $500 from her checking accont to her saving account, M1 idecreases by $500
10. Fait money is backed by a large quanty of gold.
11. The greater the quantity of money in the economy, the higher the inflation and the less effective money is in performing its role.
12.Currency debasement occurs when the quantity of gold increases in the economy
Explanation / Answer
1. True.
Money providing a common measure of the value of goods and services being measure, helps the buyers and sellers to make a decision about the buying/selling of products.
2. True.
It helps in measuring the value of goods and serives into a common standard unit.
3. False.
This is using the function as store of value. The money does not loses its power very much, it is a durable thing.
4. False.
This is the use of function of money as a medium of exchange.
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