If a person uses money to buy a pair of shoes, money is functioning as Question

Question

If a person uses money to buy a pair of shoes, money is functioning as Question 4 options:

a medium of exchange.

a store of value.

a unit of account ormeasurement.

none of the above

A single commercial bank must meet a 20% reserve requirement. If this bank has no excess reserves to begin with and $20,000 cash is deposited into a checking account in the bank, then the bank can safely increase its loans by a maximum of:

Question 5 options:

$4,000.

$20,000.

$2,000.

$16,000.

$4,000.

$20,000.

$2,000.

$16,000.

Explanation / Answer

1

Medium of exchange

it means exchange(purchase and sale) of goods and services with the medium of money.

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