Question

Question 9 (1 point)

Which of the following is not considered a function of money?

Question 9 options:

	it facilitates exchange
	it acts as a means of payment
	it can be held and exchanged for future goods and services
	it allows banks to lend out funds
	all of the above are functions of money

Question 10 (1 point)

Suppose that I find out from a L.L. Bean catalogue that a sweater costs $45. In this case, money is serving as a

Question 10 options:

	medium of exchange
	unit of account
	store of value
	double coincidence of wants

Question 11 (1 point)

Saved

Sam redeems $500 in traveler's checks. He cashes a $100 traveler check, deposits $150 into his checking account, and deposits the remaining $250 into a savings account. How do M1 and M2 change due to these transactions?

Question 11 options:

	M1 decreases by $250 and M2 does not change
	M1 decreases by $400 and M2 increases by $250
	M1 does not change and M2 increases by $250
	M1 and M2 do not change

Question 13 (1 point)

Which of the following is a liability of a commercial bank?

Question 13 options:

	vault cash
	loans
	deposits at the Federal Reserve
	checking deposits

Answer 1

9) Money functions as a medium of exchange and payment and can also be held to be used in the future. However, it is not a function of money to be lent out by the banks. So, the correct option will be:

it allows banks to lend out funds

10) Ans: Unit of account

A unit of account is a standard monetary unit of measurement of value/cost of goods, services, or assets. So, here the value of sweater given is a unit of account.

Please post the other questions separately. Thanks and good luck :)