2.

Which of the following characteristics of money requires that all items used must be valued in terms of comparable units for money to serve effectively as a measure of value?

Divisibility

Durability

Acceptability

Stability

Portability

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3.

In the context of characteristics of money, the principle of stability:

ensures that money is light weight and portable.

requires money to be readily acceptable for the purchase of goods and services.

requires all items used as money to be valued in terms of comparable units.

allows people to postpone purchases without fear that money will decline in value.

destroys the ability of money to store value and serve as an effective medium of exchange.

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10.

The four basic tools using which the Federal Reserve Board fine-tunes money growth are reserve requirements, discount rates, credit controls, and _____.

open market operations

the exchange rates

mutual savings banks

credit unions

commercial banks