Question : 31) When money used to compare the relative price of : 1227851

 

 

31) When money is used to compare the relative price of a burrito and a taco, money is being used as a

A) medium of exchange.

B) store of value.

C) measurement of inflation.

D) unit of account.

E) token of bartering.

Answer:  D

Topic:  Functions of money, unit of account

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  NAU

32) The store of value function is defined as the

A) pricing of goods and services in one measure.

B) exchange of goods and services directly for other goods and services.

C) holding of money from one transaction to be used later in another transaction.

D) double coincidence of wants that is used in the debate over barter versus money.

E) use of money as a medium of exchange.

Answer:  C

Topic:  Functions of money, store of value

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  WM

 

33) When we keep part of our wealth in a bank checking account, we are using money as a

A) store of value.

B) medium of exchange.

C) barter token.

D) unit of account.

E) unit of currency.

Answer:  A

Topic:  Functions of money, store of value

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  DMC

 

34) Keeping $20 in currency to be able to buy gasoline, money is performing which function?

A) medium of exchange

B) unit of account

C) store of value

D) barter mechanism

E) symbol of fiat

Answer:  C

Topic:  Functions of money, store of value

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  TPS

 

35) The word “fiat” is

A) used to describe today’s money because it is money set by law.

B) used to describe money from when Kings ruled by decree or fiat.

C) the term used to define the concept of barter.

D) another word to mean the “double coincidence of wants.”

E) Latin for “backed by gold.”

Answer:  A

Topic:  Fiat money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  WM

36) Money today

A) is the demand for loanable funds.

B) is the supply of loanable funds.

C) is only currency inside banks.

D) is fiat money.

E) in the United States, is only dollar bills and coins .

Answer:  D

Topic:  Fiat money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  CD new

 

37) The U.S. dollar is called

A) fiat money because the law decrees it is money.

B) faith money.

C) commodity money, because it is convertible into gold.

D) frail money because wear and tear ruins paper bills.

E) convertible money because the government stands ready to convert it into gold or silver.

Answer:  A

Topic:  Fiat money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  DMC

 

38) Fiat money means

A) Italian currency.

B) money’s value does not change.

C) the government has decreed that something is money.

D) the money can be converted into gold.

E) only currency counts as money.

Answer:  C

Topic:  Fiat money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  TPS

 

39) The objects that we use as money today are

A) checks and credit cards.

B) currency and checks.

C) currency and deposits.

D) deposits and checks.

E) currency, deposits, and gold.

Answer:  C

Topic:  What is included in money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  DMC

40) Which statement most accurately captures the state of money today?

A) Money today includes currency, bank deposits and checks.

B) Money today includes currency and checks but not bank deposits.

C) Money today includes bank deposits and currency but not checks.

D) Money today includes bank deposits and checks but not currency.

E) Money today includes checks and credit cards.

Answer:  C

Topic:  What is included in money

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  WM