1) This video quotes economist Milton Friedman, who stated, The pieces of green paper [U.S. dollars] have value because everyone thinks they have value. Friedman is referring to moneys role as a _____.

a

unit of account

b

tool of government

c

store of value

d

medium of exchange

2) The video discusses a relatively new form of money called Bitcoin. Which of the following statements is true of Bitcoin?

a

Although some people consider Bitcoin to be money, economists disagree and classify it as a credit instrument, similar to a credit card.

b

It is regulated by the International Monetary Fund.

c

The value of Bitcoin is fixed at a specific equivalent dollar value.

d

It is sometimes used by people who want to buy illegal goods online

3) The video shows many examples of paper currency and coins. Both of these types of money are included:

a

in both M1 and M2

b

only in M1

c

in neither M1 nor M2

d

only in M2

4) The video shows large, heavy limestone disks on Yap Island. These stone disks lack two key qualities of money: divisibility and ______.

a

durability

b

stability

c

portability

d

solidity

5) According to this video, money exists because it is much more efficient for making transactions than ______ is.

a

the stock market

b

barter

c

paper currency

d

the bond market