Question 1

Which of the following is not a store of value?

Accepted Answer

The answer of Which of the following is not a...

Question 2

Currency consists of:

Accepted Answer

Currency is typically defined as physical tokens which have a standardized value and can be traded for goods and services. The two most common forms of physical currency are coins and paper money, so the best choice is C - coins and paper money. While Eurodollars are a form of currency, they are electronic rather than physical, so they are not typically included in the definition of currency used to describe physical tokens. Checks are also not considered currency because they do not have standardized values and are not widely accepted as a means of payment.

Question 3

Buying a cup of coffee with a dollar bill represents the use of money as a:

Accepted Answer

In this scenario, the dollar bill is being used as a means to exchange for a cup of coffee. Money serves as a medium of exchange when it is used to facilitate transactions between buyers and sellers. Unit of account and store of value are other functions of money, but they are not demonstrated in this particular scenario.

Question 4

Coins and dollar bills are money in the form of:

Accepted Answer

Coins and dollar bills are physical forms of currency, which is defined as a medium of exchange for goods and services. Barter, capital stock, and investment are not directly related to the physical forms of money.

Question 5

The statement that Computech's profits totaled $500 million last year represents the use of money as a:

Accepted Answer

The statement indicating Computech's profits as $500 million last year refers to the use of money as a unit of account, which is a measuring tool to determine the value of goods and services.

Question 6

Are outstanding credit card balances counted as part of the money supply?

Accepted Answer

Outstanding credit card balances are not included in the money supply figures because they are a liability for the individual, not an asset. The money supply includes only assets that can be used as a medium of exchange, such as cash, checking deposits, and traveler's checks.

Question 7

Which of the following is not an example of money used as a unit of account?

Accepted Answer

The answer of Which of the following is not an...

Question 8

One hundred dollars on deposit in a checking account represents the use of money as a:

Accepted Answer

Money stored in a checking account represents a store of value, as the money is being held for future use but can still be readily accessed and used as needed, similar to a savings account. It is not being directly used as a medium of exchange or a unit of account, as those refer more specifically to money being used in transactions or to measure goods and services. "Coincident exchange" is not a common economic term and does not apply in this scenario.

Question 9

The use of a dollar bill to buy a concert ticket represents the function of money as a:

Accepted Answer

The use of a dollar bill to buy a concert ticket represents the exchange of money for a good or service. Therefore, the dollar bill is serving as a medium of exchange. While money can also serve as a unit of account and a store of value, these functions are not represented directly by the act of using a dollar bill to buy a concert ticket.

Question 10

Comparing how many dollars it takes you to run your car each year to annual earnings on a job instead of keeping track of costs in terms of gallons of gasoline and quarts of oil represents the use of money as a:

Accepted Answer

Using money as a unit of account involves measuring the value of goods and services in terms of a monetary unit. In this scenario, the cost of running a car is being measured in dollars, which is an example of using money as a unit of account.

Question 11

Which of the following items does not provide a store of value?

Accepted Answer

Credit cards do not provide a store of value as they do not hold any monetary value themselves. They are simply a means of accessing credit or funds from an outside source. Currency and checkable deposits both provide a store of value as they can be physically held and used as a means of exchange.

Question 12

If every person is willing to accept money in payment, rather than goods and services, money serves as a:

Accepted Answer

Money serves as a medium of exchange when it is used to facilitate transactions between individuals who want to buy or sell goods and services. It enables people to trade without the need for direct barter.

Question 13

The primary functions of money are:

Accepted Answer

The primary functions of money are to serve as a medium of exchange for goods and services, to provide a common unit for measuring the value of those goods and services, and to act as a store of value over time. These functions are generally referred to as the "medium of exchange" function, the "unit of account" function, and the "store of value" function, respectively.

Question 14

If something is a medium of exchange, then it:

Accepted Answer

A medium of exchange is something that is widely accepted as payment for goods and services. This means that people are willing to take it in exchange for what they have to offer. Examples include money and other forms of currency. Option A refers to a standard of value, while option B refers to a store of value. Option C is no longer relevant in the modern economy, as most currencies are no longer tied to the gold standard.

Question 15

If something is a unit of account, then it:

Accepted Answer

A unit of account is a measure of value that is used to compare the prices of different goods and services. It serves as a yardstick for measuring the relative value of other goods. This measure of value allows for more efficient and accurate transactions as it provides a common understanding of the value of goods and services.

Question 16

Which of the following is the most liquid store of purchasing power?

Accepted Answer

A dollar bill is the most liquid store of purchasing power as it can be easily converted into goods and services. Common stock, gold, and real estate can be more difficult to sell quickly and may have fluctuations in value.

Question 17

Comparing how many dollars it takes to attend college each year to annual earnings on a job represents the use of money as a:

Accepted Answer

Comparing the cost of college to annual earnings on a job involves using money as a unit of account, which is a function of money that allows us to measure value in a consistent way.

Question 18

Anything can be money if it acts as a:

Accepted Answer

For something to be considered as money, it must function as a unit of account, meaning prices are quoted in it; a store of value, meaning it can be saved and retrieved later with its purchasing power intact; and a medium of exchange, meaning it is widely accepted in exchange for goods and services. Therefore, all three criteria must be met for something to be considered as money.

Question 19

Credit cards are:

Accepted Answer

Credit cards are not considered money because they represent a line of credit rather than actual funds or currency. They allow users to borrow money up to a certain limit but do not constitute money themselves.

Question 20

Which of the following is not a store of value?

Accepted Answer

A credit card is not a store of value as it does not hold any intrinsic value and is only a means of accessing credit or utilizing funds that have already been stored elsewhere (such as in a bank account). Dollar bills, coins, and gold are all considered stores of value as they hold their own intrinsic value and can be exchanged for goods or services.

Quiz 18: Money and the Federal Reserve System

Which of the following is not a store of value?

Currency consists of:

Buying a cup of coffee with a dollar bill represents the use of money as a:

Coins and dollar bills are money in the form of:

The statement that Computech's profits totaled $500 million last year represents the use of money as a:

Are outstanding credit card balances counted as part of the money supply?

Which of the following is not an example of money used as a unit of account?

One hundred dollars on deposit in a checking account represents the use of money as a:

The use of a dollar bill to buy a concert ticket represents the function of money as a:

Comparing how many dollars it takes you to run your car each year to annual earnings on a job instead of keeping track of costs in terms of gallons of gasoline and quarts of oil represents the use of money as a:

Which of the following items does not provide a store of value?

If every person is willing to accept money in payment, rather than goods and services, money serves as a:

The primary functions of money are:

If something is a medium of exchange, then it:

If something is a unit of account, then it:

Which of the following is the most liquid store of purchasing power?

Comparing how many dollars it takes to attend college each year to annual earnings on a job represents the use of money as a:

Anything can be money if it acts as a:

Credit cards are:

Which of the following is not a store of value?