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Questions and Answers
Which characteristic distinguishes Fiat Money from Commodity Money?
Which characteristic distinguishes Fiat Money from Commodity Money?
- Physical form
- Intrinsic value (correct)
- Unit of account
- Acceptance for payment
What is the primary function of money as described in the text?
What is the primary function of money as described in the text?
- Double coincidence of wants
- Store of value (correct)
- Medium of exchange
- Unit of account
Why is the concept of 'double coincidence of wants' important in a barter system?
Why is the concept of 'double coincidence of wants' important in a barter system?
- It eliminates the need for money
- It prevents trade disputes
- It ensures fair trade
- It facilitates trade by requiring mutual needs (correct)
What does the term 'Wealth' refer to based on the context provided?
What does the term 'Wealth' refer to based on the context provided?
Which function of money allows for the easy buying and selling of goods and services?
Which function of money allows for the easy buying and selling of goods and services?
Which characteristic of money refers to the ease with which an asset can be accessed and used as a medium of exchange?
Which characteristic of money refers to the ease with which an asset can be accessed and used as a medium of exchange?
What type of assets does M2 include, in addition to the assets included in M1?
What type of assets does M2 include, in addition to the assets included in M1?
In personal finance, what is a liability?
In personal finance, what is a liability?
What do stocks represent in the financial sector?
What do stocks represent in the financial sector?
What happens to bond prices when interest rates rise?
What happens to bond prices when interest rates rise?
Which type of financial instrument has a specific interest rate that remains constant throughout its life?
Which type of financial instrument has a specific interest rate that remains constant throughout its life?
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