13) Money as a means of payment refers to: 13) ______

A) only coins and currency.

B) only coins, currency and credit cards.

C) anything that is generally accepted as payment for goods and services.

D) only actual currency.

14) All of the following are true about electronic funds transfers except: 14) ______

A) include automated clearinghouse transactions (ACH).

B) sometimes involve the Federal Reserve sending electronic images of checks to banks.

C) include credit card payments made online.

D) occur when banks or individuals deposit/withdraw from one bank account to another electronically.

15) Gross Domestic Product in the U.S. is roughly: 15) ______

A) twice as large as M2. B) more than five times M1.

C) equal to M2. D) equal to M1.

16) The purchasing power of money: 16) ______

A) decreases as the price level decreases.

B) is not impacted by inflation, only by monetary policy.

C) rises when inflation rises.

D) decreases with inflation.

17) Mutual funds have: 17) ______

A) increased the transactions costs associated with participating in financial markets.

B) been created for very wealthy individuals with a lot of money to invest.

C) reduced the costs associated with gathering information on stocks and bonds.

D) increased the risks associated with constructing a portfolio.

18) The New York Stock Exchange is an example of a: 18) ______

A) financial instrument. B) bank.

C) financial institution. D) financial market.