Question 1

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

Accepted Answer

A)   money
B)   stock
C)   artwork
D)   gold

Question 2

Explain the concepts of wealth and income and how they relate to the concept of money.

Accepted Answer

Non-economists often use money synonymou...

Question 3

The currency component of M2 shows that there is ________ in cash in the hands of each person in Canada.

Accepted Answer

A)   $150
B)   $15000
C)   $1500
D)   $15

Question 4

There is no single precise measure of money or the money supply for economists because ________.

Accepted Answer

A)   the government considers money supply statistics to be confidential and refuses to publish them
B)   deciding what is generally accepted in payment for goods and services or in the repayment of debt is difficult to determine
C)   economists cannot agree if currency should be considered money
D)   definitions change all the time

Question 5

If merchants in the country Zed choose to close their doors, preferring to be stuck with rotting merchandise rather than worthless currency, then one can conclude that Zed is experiencing a ________.

Accepted Answer

A)   superdeflation
B)   hyperdeflation
C)   disinflation
D)   hyperinflation

Question 6

Which of the following is not included in the measure of M2?

Accepted Answer

A)   Personal deposits
B)   Non-personal demand deposits
C)   Currency
D)   Foreign currency deposits

Question 7

Explain the evolution of the payments system. Is the system headed towards a cashless society?

Accepted Answer

Societies begin with a barter system and...

Question 8

When compared to exchange systems that rely on money, disadvantages of the barter system include ________.

Accepted Answer

A)   the requirement of a double coincidence of wants
B)   lowering the cost of exchanging goods over time
C)   lowering the cost of exchange to those who would specialize
D)   encouraging specialization and the division of labor

Question 9

Compared to an electronic payments system, a payments system based on cheques has the major drawback that ________.

Accepted Answer

A)   cheques are less costly to process
B)   cheques take longer to process, meaning that it may take several days before the depositor can get her cash
C)   fraud may be more difficult to commit when paper receipts are eliminated
D)   legal liability is more clearly defined

Question 10

An individual's annual salary is her ________.

Accepted Answer

A)   money
B)   income
C)   wealth
D)   liabilities

Exam 3: What Is Money

Compared to an electronic payments system, a payments system based on cheques has the major drawback that ________.

Correct Answer
verified

An individual's annual salary is her ________.

Correct Answer
verified

When compared to exchange systems that rely on money, disadvantages of the barter system include ________.

Correct Answer
verified

Explain the evolution of the payments system. Is the system headed towards a cashless society?

Correct Answer
verified
Societies begin with a barter system and...
View Answer

Explain the concepts of wealth and income and how they relate to the concept of money.

Correct Answer
verified
Non-economists often use money synonymou...
View Answer

If merchants in the country Zed choose to close their doors, preferring to be stuck with rotting merchandise rather than worthless currency, then one can conclude that Zed is experiencing a ________.

Correct Answer
verified

Which of the following is not included in the measure of M2?

Correct Answer
verified

The currency component of M2 shows that there is ________ in cash in the hands of each person in Canada.

Correct Answer
verified

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

Correct Answer
verified

There is no single precise measure of money or the money supply for economists because ________.

Correct Answer
verified

Exam 3: What Is Money

Compared to an electronic payments system, a payments system based on cheques has the major drawback that ________.

Correct AnswerverifiedShow Answer

An individual's annual salary is her ________.

Correct AnswerverifiedShow Answer

When compared to exchange systems that rely on money, disadvantages of the barter system include ________.

Correct AnswerverifiedShow Answer

Explain the evolution of the payments system. Is the system headed towards a cashless society?

Correct AnswerverifiedSocieties begin with a barter system and...View AnswerShow Answer

Explain the concepts of wealth and income and how they relate to the concept of money.

Correct AnswerverifiedNon-economists often use money synonymou...View AnswerShow Answer

If merchants in the country Zed choose to close their doors, preferring to be stuck with rotting merchandise rather than worthless currency, then one can conclude that Zed is experiencing a ________.

Correct AnswerverifiedShow Answer

Which of the following is not included in the measure of M2?

Correct AnswerverifiedShow Answer

The currency component of M2 shows that there is ________ in cash in the hands of each person in Canada.

Correct AnswerverifiedShow Answer

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

Correct AnswerverifiedShow Answer

There is no single precise measure of money or the money supply for economists because ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Societies begin with a barter system and...
View Answer

Correct Answer
verified
Non-economists often use money synonymou...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified