1 2 In 2009, a country in Southeast Africa, due to hyper inflation, had to abandon its own currency and allowed for the use of several different foreign currencies including the US Dollars for daily transactions in the public over a period of nearly 10 years. What is the term for this practice? a. b. C. d. Disintermediation Complete dollarization Partial dollarization Monetization Following World War II, inflation became so bad that Germans stopped using Reichsmarks for transactions, and instead used cigarettes for small transactions and cognac for large transactions. Which of the following best describes this situation? a. b. c. d. Reichsmarks were plentiful and valuable, but Germans preferred to barter. Germans wanted to disassociate themselves from the Third Reich. Cigarettes and cognac functioned as money in Germany in this period following World War II. Cigarettes and cognac were more plentiful than Reichsmarks, so Germans found them more convenient to use for transactions than Reichsmarks. 3 4 According to neoclassical view, money is most accurately defined by which of the following statements? a. b. C. d. Money is whatever a nation's government declares it to be. Money is currency printed by the local government. Money is a measure of the wealth of a nation. Money is anything generally accepted in exchange for goods and services. When a coffee shop lists a tall coffee on its menu at $2.95, the coffee shop is using money as a a. b. c. d. unit of account medium of exchange store of value medium of investment