Question 6 McDonalds quotes the price of a happy meal at $3.79. This is an example of money serving as a(n): A. medium of exchange. B. store of value. C.unit of account. D. investment good.

Question 7 Cowrie shells have been used as money in West Africa. This is an example of: A. fiat money. B. legal money. C. token money. D. commodity money.

Question 8 Money that has no intrinsic value and is created by a government decree is called: A.barter money. B. commodity money. C. fiat money. D. asset money.

Question 9 In the country of Kaboom, the government doubled the money supply overnight. As a result of this action, the price of a gallon of milk increased from 3 Kaboomian dollars to 200 Kaboomian dollars. This is an example of: A. deflation. B. a change in legal tender. C. a change from commodity money to fiat money. D. currency debasement.

Question 10 Legal tender is: A. money that must be backed by gold. B. money that can not be counterfeited. C. money that has a value other than as a currency. D. money that a government has required to be accepted in settlement of debts.