Question : 21) When we use money to purchase goods and services, : 1227844

 

 

21) When we use money to purchase goods and services, we are using money as a

A) unit of account.

B) reserve of wealth.

C) medium of exchange.

D) store of value.

E) bartering tool.

Answer:  C

Topic:  Functions of money, medium of exchange

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  DMC

 

22) When you use currency to buy lunch, money is performing which function?

A) medium of exchange

B) unit of purchase

C) store of value

D) barter token

E) unit of currency

Answer:  A

Topic:  Functions of money, medium of exchange

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  TPS

 

23) What is a problem with barter that makes it so difficult to use?

A) Individuals have to produce something to trade with.

B) Barter requires a double coincidence of wants.

C) Barter is very efficient but illegal because it avoids taxation.

D) Barter requires use of only fiat money.

E) Barter omits the store of value role for money.

Answer:  B

Topic:  Functions of money, medium of exchange

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  TPS

 

24) Which of the following best describes a double coincidence of wants?

A) Two buyers want the same good.

B) Neither buyer wants a good.

C) You have what another wants and you want what they have.

D) A buyer and a seller rather than two buyers or two sellers must meet.

E) None of the above answers is correct.

Answer:  C

Topic:  Functions of money, medium of exchange

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  TPS

25) The unit of account is defined as

A) the exchange of goods and services directly for other goods and services.

B) barter.

C) an object that is accepted in return for goods and services.

D) an agreed upon measure for stating prices of goods and services.

E) the medium of exchange.

Answer:  D

Topic:  Functions of money, unit of account

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  WM

 

26) If you shop for a car online and compare car prices across dealerships, money is functioning as a

A) medium of exchange.

B) unit of account.

C) means of payment.

D) store of value.

E) barter mechanism.

Answer:  B

Topic:  Functions of money, unit of account

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  AA

 

27) The function of money that helps assess the opportunity cost of an activity is money’s use as a

A) medium of exchange.

B) store of value.

C) unit of account.

D) store of debt.

E) barter tool.

Answer:  C

Topic:  Functions of money, unit of account

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  CT

 

28) When we put a price tag on goods and services, we are using money as a

A) store of value.

B) medium of exchange.

C) barter token.

D) unit of account.

E) means of payment.

Answer:  D

Topic:  Functions of money, unit of account

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  DMC

29) When you see a mansion and think to yourself that it must be worth a million dollars, you are using money to perform which function?

A) medium of exchange

B) unit of account

C) store of value

D) means of payment

E) method of avoiding barter

Answer:  B

Topic:  Functions of money, unit of account

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  TPS

 

30) Money is used as a ________ when you visit the local farmers’ market and compare prices across different vendors.

A) means of payment

B) unit of account

C) store of value

D) medium of exchange

E) measure of barter

Answer:  B

Topic:  Functions of money, unit of account

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  CD new

 

 

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