Question
Question 12 (2 points) When an asset is used as a universal yardstick for expressing the worth of different goods and services, it serves the
Question 12 (2 points)
When an asset is used as a universal yardstick for expressing the worth of different goods and services, it serves the function of a ________.
Question 12 options:
store of value | |
unit of account | |
medium of exchange | |
loanable fund |
Question 13 (2 points)
Betsy enters a roadside cafeteria and orders a medium-sized cappuccino and a chicken burger. She hands over $5 at the cash counter and collects the food. In this example, money serves the function of ________.
Question 13 options:
a medium of exchange | |
a store of value | |
a measure of inflation | |
a means of deferred payment |
Question 14 (2 points)
Ryan saved $50,000 last year so that he could buy a car this year. In this case, money served the function of a ________.
Question 14 options:
medium of exchange | |
store of value | |
unit of account | |
measure of inflation |
Question 15 (2 points)
Anna, Barry, and Clara grew up together in Michigan. After college, they each went overseas to countries that had different currencies. They had a group chat in which they were comparing costs of living. So that they could understand one another, they each converted their costs into U.S. dollars. What purpose did the U.S. dollar serve in their conversation?
Question 15 options:
Medium of exchange | |
Store of value | |
Unit of account | |
Loanable fund |
Question 16 (2 points)
Daniel lives in Fiji. He learns that the Fijian dollar is an example of fiat money. This means that the Fijian dollar ________.
Question 16 options:
is worth exactly 1 U.S. dollar | |
fluctuates in value against other countries' currencies | |
can be exchanged at a fixed rate for a physical commodity like gold or silver | |
is not backed by a physical commodity like gold or silver |
Question 17 (2 points)
What makes a U.S. $100 bill valuable?
Question 17 options:
People are likely to accept a $100 bill as payment. | |
It is expensive to produce a $100 bill. | |
A $100 bill can be exchanged on demand for a given amount of gold. | |
A $100 bill is pretty to look at. |
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