Question

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 (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

Which of the following statements is (are) correct?
(x) In an economy that relies upon barter, trade does not require a double coincidence of wants.
(y) Money is more efficient than barter and makes trades easier.
(z) In an economy that relies upon barter, there is no item in the economy that is widely accepted in exchange for goods and services.
A. (x), (y) and (z)
B. (x) and (y), only
C. (x) and (z), only
D. (y) and (z), only
E. (x) only

Which list ranks assets from most liquid to least liquid?
A. money, cars, houses, bonds
B. money, bonds, cars, houses
C. money, houses, cars, bonds
D. bonds, money, cars, houses
E. bonds, cars, money, houses

Which of the following statements is (are) correct?
(x) Commodity money has intrinsic value because it has uses other than money.
(y) Commodity money is backed by gold and is the principal type of money in use today.
(z) Most of the current U.S. currency is fiat money with no intrinsic value and silver coins in the past were commodity money with intrinsic value.
A. (x), (y), and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

Answer 1

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 (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

Correct answer is : B. x and y are correct. z is incorrect as I is deferred payment if people use money to transfer purchasing power from the present to the future.

Which of the following statements is (are) correct?
(x) In an economy that relies upon barter, trade does not require a double coincidence of wants.
(y) Money is more efficient than barter and makes trades easier.
(z) In an economy that relies upon barter, there is no item in the economy that is widely accepted in exchange for goods and services.
A. (x), (y) and (z)
B. (x) and (y), only
C. (x) and (z), only
D. (y) and (z), only
E. (x) only

Correct answer is : x is incorrect as barter needs double coincidence. Hence option D as y and z are correct.

Which list ranks assets from most liquid to least liquid?
A. money, cars, houses, bonds
B. money, bonds, cars, houses
C. money, houses, cars, bonds
D. bonds, money, cars, houses
E. bonds, cars, money, houses

Option B.Liquid means quickly accepted for trade.

Which of the following statements is (are) correct?
(x) Commodity money has intrinsic value because it has uses other than money.
(y) Commodity money is backed by gold and is the principal type of money in use today.
(z) Most of the current U.S. currency is fiat money with no intrinsic value and silver coins in the past were commodity money with intrinsic value.
A. (x), (y), and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

Option C is correct. Y is wrong as commodity money is not the principle type of money.