Money
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Questions and Answers

What are the functions of money according to the text?

  • Medium of exchange, unit of account, and store of value (correct)
  • Medium of exchange, standard of deferred payment, and store of value
  • Medium of exchange, unit of account, and standard of deferred payment
  • Medium of exchange, measure of value, and store of wealth
  • What determines the demand for money?

  • Interest rates and the level of income (correct)
  • Government policies and the banking system
  • Inflation and the quantity of money in circulation
  • Price level and the money multiplier
  • What does the banking system create?

  • Money through the process of lending (correct)
  • Financial stability through regulations
  • Credit and debit cards
  • Government bonds and treasury bills
  • What influences the demand for money?

    <p>Interest rates and income levels</p> Signup and view all the answers

    How does the quantity of money influence the price level and inflation rate in the long run?

    <p>It leads to an increase in the price level and inflation rate</p> Signup and view all the answers

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