Question :
51) Credit cards are
A) a form of money used to : 1227853
51) Credit cards are
A) a form of money used to make purchases.
B) a special ID card that is not money.
C) a special ID card that is the same as money.
D) a form of money that is not generally accepted.
E) included in the M1 measure of money.
Answer: B
Topic: What is included in money
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: WM
52) When you use a credit card to pay your tuition,
A) you’ve used the credit card as money because it is a means of payment.
B) the credit card is not money but is an ID card for an instant loan.
C) the credit card is not money because it involves an electronic transaction.
D) the credit card is not money because it is not officially issued by the government.
E) you’ve used the credit card as money because you received something in return.
Answer: B
Topic: What is included in money
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CD new
53) Credit cards are
i.a generally accepted form of payment and therefore part of M1.
ii.are included in M1 because you write a check to pay your monthly bill.
iii.a means of borrowing money.
A) i only
B) ii only
C) iii only
D) i and ii
E) i and iii
Answer: C
Topic: What is included in money
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CD new
54) When Dale buys a new computer for $1,000 using a credit card,
A) he is taking out a loan for $1,000.
B) his bank account decreases by $1,000.
C) the credit card is acting as money.
D) the money supply decreases by $1,000.
E) the credit card is performing the function of an unit of account.
Answer: A
Topic: What is included in money
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: RS
55) Debit cards and e-checks are not money because
A) they can be forged easily.
B) they can fail their purpose of being mediums of exchange as a result of technical difficulties.
C) they are just instruments to transfer money between people.
D) not all banks offer them and not all businesses accept them.
E) they are not regulated by the government.
Answer: C
Topic: What is included in money
Skill: Level 1: Definition
Section: Checkpoint 11.1
Status: DMC
56) A debit card is
A) money because it is a means of payment.
B) not money but is used to transfer bank deposits which are money.
C) money because it is generally accepted as a means of payment.
D) not money because it is not officially issued by the government.
E) part of the M2 money supply but not part of the M1 money supply.
Answer: B
Topic: What is included in money
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CT
57) Which of the following are considered money?
i)electronic checks
ii)paper checks
iii)the deposit transferred using an e-check
A) i, ii and iii
B) i and iii
C) i and ii
D) iii only
E) ii and iii
Answer: D
Topic: What is included in money
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CD new
58) An official measure of money in the United States is M1, which includes the sum of
A) checkable deposits plus small time deposits.
B) currency plus checkable deposits.
C) currency plus plus credit card transactions.
D) currency plus traveler’s checks plus time deposits.
E) currency plus traveler’s checks plus checkable deposits plus small time deposits plus money market funds and other deposits.
Answer: B
Topic: M1
Skill: Level 1: Definition
Section: Checkpoint 11.1
Status: CD new
59) M1 is composed of
A) currency held by individuals and businesses, traveler’s checks, and checkable deposits owned by individuals and businesses.
B) checkable deposits owned by individuals and businesses, saving deposits, and certificates of deposit.
C) currency inside of banks, traveler’s checks, and government-issued checks.
D) traveler’s checks, credit cards, and e-cash.
E) currency held by individuals and businesses, traveler’s checks, and the credit line on credit cards.
Answer: A
Topic: M1
Skill: Level 1: Definition
Section: Checkpoint 11.1
Status: CD new
60) Which of the following are included in the M1 definition of money?
A) currency and checkable deposits
B) currency and savings deposits
C) traveler’s checks and money market mutual funds
D) currency and small time deposits
E) traveler’s checks and savings deposits
Answer: A
Topic: M1
Skill: Level 1: Definition
Section: Checkpoint 11.1
Status: RS
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