Question : 81) Which of the following best defines what money now : 1227813

 

 

81) Which of the following best defines what money is now and what it has been in the past?

A) currency

B) currency plus checking deposits

C) currency plus credit cards

D) anything accepted as a means of payment

E) anything used as a store of value

Answer:  D

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  STUDY GUIDE

 

82) Which of the following is NOT a function of money?

i.unit of account

ii.store of value

iii.unit of debt

A) i only

B) ii only

C) iii only

D) Both ii and iii

E) Both i and ii

Answer:  C

Topic:  Functions of money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  STUDY GUIDE

83) Barter is

A) the exchange of goods and services for money.

B) the pricing of goods and services with one agreed upon standard.

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

D) a generally accepted means of payment.

E) storing money for use at a later date.

Answer:  C

Topic:  Barter

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  STUDY GUIDE

 

84) If someone buries money in a tin can beneath a tree, the money is functioning as a

A) medium of exchange.

B) unit of account.

C) means of payment.

D) store of value.

E) bartering tool.

Answer:  D

Topic:  Functions of money, store of value

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  STUDY GUIDE

 

85) Credit cards, debit cards, and e-checks are

A) always counted as money.

B) not money.

C) sometimes counted as money, depending on how they are used.

D) sometimes counted as money, depending on what is purchased.

E) sometimes counted as money, depending on what measure of money is being used.

Answer:  B

Topic:  What is included in money

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  STUDY GUIDE

 

86) Which of the following counts as part of M1?

A) $5,000 worth of gold

B) $5,000 worth of government bonds

C) $5,000 in a checking account

D) $5,000 credit line on a credit card

E) $5,000 of real estate

Answer:  C

Topic:  M1

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  STUDY GUIDE

87) M2 equals

A) M1 and is just another name for currency outside of banks.

B) M1 plus savings deposits, small time deposits, and money market fund deposits.

C) M1 minus traveler’s checks because they are not really money.

D) currency plus savings deposits, all time deposits, and money market funds and other deposits.

E) M1 plus savings deposits and small time deposits minus money market fund deposits.

Answer:  B

Topic:  M2

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  STUDY GUIDE

 

88) If currency outside of banks is $800 billion; traveler’s checks are $10 billion; checkable deposits owned by individuals and businesses are $700 billion; savings deposits are $4,000 billion; small time deposits are $1,000 billion; and money market funds and other deposits are $800 billion, then M1 equals ________ billion.

A) $7,310

B) $5,800

C) $2,510

D) $1,510

E) $710

Answer:  D

Topic:  M1

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  STUDY GUIDE