Solution :- the correct answer is (C) that is goods and assets are priced in terms of it.
Money is a unit of account because: O A. it is liquid. B. it is a...
Money is the most liquid asset available because 0 a. it is a store of value. O b. it is a medium of exchange. O c. it is a unit of account. 0 d. it has intrinsic value.
Determine whether each of the following would fulfill the three functions of money. If the item does not fulfill all three, name at least one function of money that it violates. Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. a. Salt Salt could be a good store of value because salt keeps for a long time. Salt fulfills the medium...
1. Functions of money and barter Consider an economy in which money does not exist, so that agents rely on barter to carry out transactions. When the economy was small, barter seemed sufficient. However, the economy has now begun to grow. If people in this economy trade five goods, the price tag of each good must list 1.______prices, and the economy requires 2._____prices for people to carry out transactions. Suppose that the number of goods people trade increases to 19....
1) Because money eliminates the "double coincidence of wants" problem, the development of money as a ________ has facilitated the expansion of trade. a) store of value b) medium of exchange c) unit of account d) measure of value 2) Aster won $5,000 on a slot machine. She deposits her $5,000 winnings into a money market fund so that she can use the money next year to help her pay for a new boat. This is an example of money...
when a person buys certificate of deposit, money is playinf
the role of?
QUESTION 4 When a person buys certificate of deposit, money is playing the role of: O A. store of value. OB. medium of exchange. o C unit of account OD barter.
Which of the following statements is (are) correct? (x) If you mark the prices of shirts at your clothing store in dollars you are using money as a unit of account (y) When you pay for your food at the restaurant with currency you are utilizing the medium of exchange function of money. (z) Any item that people can use to transfer purchasing power from the present to the future is called a store of value A. (x), (y), and...
WRITE A 75 WORD RESPONSE "An engine cannot run without oil. In the absence of money there were great difficulties in exchanging goods and services. This worked as an obstacle to the division of labor and specialization among various individuals and nations. By opening up the opportunities of effecting division of labor and through facilitating exchange and trade of goods and services money contributes to the expansion of production. Therefore, money enables the increase in the amount of production and...
Money can be many things, but it is mor A. a financial liability B a financial asset. C. liquid. D. illiquid The U.S. central bank (Fed) is a financial institution that A. has the sole right to accept deposits and make loans. B. has the sole right to issue currency. C. sets borrowing and lending in a country. D. determines what assets will back a currency. Which of the following is not one of the functions of money? A. Medium...
High inflation O A. decreases uncertainty O B. makes money function less well as a store of value. O C. makes it easier to use money as a standard of account. O D. lowers the price level O E. leads to a more correct allocation of resources. ype here to search
The function of money as a store of value diminishes if A. people begin to barter. B. money is no longer backed by gold. C. interest rates increase. D. prices of goods and services increase. Which of the following will NOT cause a rightward shift in the supply curve? A.a reduction in resource costs B.a reduction in the expected future price C.an improvement in technology D.none of the above