11 Questions
What is the term for the situation where each trader needs to have something the other one wants?
Double Coincidence of Wants
Which type of money has intrinsic value such as gold, silver, or cigarettes?
Commodity Money
What is the function of money that allows it to be easily used to buy goods and services without the complications of the barter system?
Medium of Exchange
Which term refers to the total collection of assets that a person or entity possesses?
Wealth
What type of money serves as a medium of exchange but has no intrinsic value beyond its use as money?
Fiat Money
What characteristic of money refers to the ease with which an asset can be accessed and used as a medium of exchange?
Liquidity
Which of the following is considered part of M2, the category of 'Near-Moneys'?
Savings deposits
In the financial sector, which network of institutions links borrowers and lenders?
Banks
What does a bond represent?
Debt that must be repaid
What happens to the price of a bond when interest rates rise?
Decreases
What does a stockholder represent in a corporation?
An owner of the company
Test your knowledge on the barter system, double coincidence of wants, money, wealth, and income. Learn about commodity money like gold and silver, as well as fiat money.
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