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Questions and Answers
Which of the following is NOT a characteristic of money?
Which of the following is NOT a characteristic of money?
- Portability
- Durability
- Intrinsic Value (correct)
- Divisibility
What is the primary function of money as a 'unit of account'?
What is the primary function of money as a 'unit of account'?
- To serve as a medium of exchange
- To provide a standard for measuring value (correct)
- To store purchasing power over time
- To act as a legal tender
Commodity money has no intrinsic value.
Commodity money has no intrinsic value.
False (B)
What is 'liquidity' in the context of money?
What is 'liquidity' in the context of money?
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Which of the following is included in M1?
Which of the following is included in M1?
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M2 is a broader measure of the money supply than M1.
M2 is a broader measure of the money supply than M1.
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What is the role of the Federal Reserve (or central bank) in a country's monetary system?
What is the role of the Federal Reserve (or central bank) in a country's monetary system?
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What is 'fiat money'?
What is 'fiat money'?
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Credit cards are considered part of the money supply.
Credit cards are considered part of the money supply.
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