Barter System and Money Concepts
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Questions and Answers

What is the term for the situation where each trader needs to have something the other one wants?

  • Wealth Exchange
  • Double Coincidence of Wants (correct)
  • Barter System
  • Income Barter

    • Which type of money has intrinsic value such as gold, silver, or cigarettes?

  • Commodity Money (correct)
  • Fiat Money
  • Paper Money
  • Digital Currency

    • 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?

  • Wealth Measurement
  • Unit of Account
  • Store of Value
  • Medium of Exchange (correct)

    • Which term refers to the total collection of assets that a person or entity possesses?

    <p>Wealth</p> Signup and view all the answers

    What type of money serves as a medium of exchange but has no intrinsic value beyond its use as money?

    <p>Fiat Money</p> Signup and view all the answers

    What characteristic of money refers to the ease with which an asset can be accessed and used as a medium of exchange?

    <p>Liquidity</p> Signup and view all the answers

    Which of the following is considered part of M2, the category of 'Near-Moneys'?

    <p>Savings deposits</p> Signup and view all the answers

    In the financial sector, which network of institutions links borrowers and lenders?

    <p>Banks</p> Signup and view all the answers

    What does a bond represent?

    <p>Debt that must be repaid</p> Signup and view all the answers

    What happens to the price of a bond when interest rates rise?

    <p>Decreases</p> Signup and view all the answers

    What does a stockholder represent in a corporation?

    <p>An owner of the company</p> Signup and view all the answers

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