NO MISSING DATA OR GRAPH THIS IS A MULTIPLE CHOICE ANSWERS. PICK ONE THE BEST MATCHES.

1.Money

a. is more efficient than barter.

b. makes trades easier.

c. allows greater specialization.

d.All of the above are correct.

_

2. The existence of money leads to

a. greater specialization in production, but not to a higher standard of living.

b. a higher standard of living, but not to greater specialization.

C .greater specialization and to a higher standard of living.

d. neither greater specialization nor to a higher standard of living.

_

3Which of the following lists is included in what economists call "money"?

a. cash

b. cash and stocks and bonds

c. cash and stocks and bonds and real estate

d. cash and stocks and bonds and real estate and all other assets

_

4Economists use the term "money" to refer to

a.all wealth.

b. all assets, including real assets and financial assets.

c. all financial assets, but not real assets.

d. those types of wealth that are regularly accepted by sellers in exchange for goods and

services.

_

5Which of the following is a function of money?

a. a unit of account

b. a store of value

c. medium of exchange

d. All of the above are correct.

_

6Which of the following best illustrates the medium of exchange function of money?

a. You keep some money hidden in your shoe.

b. You keep track of the value of your assets in terms of currency.

c. You pay for your oil change using currency.

d. None of the above is correct.

_

7Any item that people can use to transfer purchasing power from the present to the future is called

a. a medium of exchange.

b. a unit of account.

c. a store of value.

d. None of the above is correct.

8.Which of the following is a store of value?

a. Currency

(dollar bills)

b. U.S. government bonds

c. fine art

d. All of the above are correct.

9 Liquidity refers to

a. the ease with which an asset is converted to the medium of exchange.

b. the measurement of the intrinsic value of commodity money.

c. the measurement of the durability of a good.

d. how many time a dollar circulates in a given year.

10.Which list ranks assets from most to least liquid?

a. money, bonds, cars, houses

b. money, cars, houses, bonds

c. bonds, money, cars, houses

d. bonds, cars, money, houses

11 Money is

a. the most liquid asset and a perfect store of value.

b. the most liquid asset but an imperfect store of value.

c. not the most liquid asset but a perfect store of value.

d.neither the most liquid asset and nor a perfect store of value.

_

12. Treasury Bonds are

a. both a store of value and a medium of exchange.

b. a store of value, but not a medium of exchange

c. a medium of exchange, but not a store of value.

d.neither a store of value nor a medium of exchange.

_

13 When in France you notice that prices are posted in euros, this best illustrates money's function as

a. a store of value.

b. a medium of exchange.

c. a unit of account.

d. a method of barter.

_

14.If an economy uses silver as money, then that economy's money

a. serves as a store of value but not as a medium of exchange.

b. serves as a medium of exchange but not as a unit of account.

c. is commodity money.

d. has no intrinsic value.

_

15 Currently, U.S. currency is

a. fiat money with intrinsic value.

b. fiat money with no intrinsic value.

c. commodity money with intrinsic value.

d. commodity money with no intrinsic value.

16.For purposes of analyzing the money stock and its relationship to relevant economic variables,

money is best thought of as

a. those items that can be readily accessed and used to buy goods and services.

b. currency only.

c. currency plus all bank accounts.

d. currency plus all bank accounts plus bonds.

_

17The set of items that serve as media of exchange clearly includes

balances that l

ie behind debit cards.

b. demand deposits.

c. other checkable deposits.

d. All of the above are correct.

_

18. The set of items that serve as media of exchange clearly includes

a. demand deposits.

b. short term bonds.

c. credit cards.

d. All of the above are correct