Exam 3: What Is Money

What factors have slowed down the movement to a system where all payments are made electronically?

All of the following are necessary criteria for a commodity to function as money except

Explain how cigarettes could be called "money" in prisoner-of-war camps of World War II.

Compared to an economy that uses a medium of exchange, in a barter economy

As a store of value, money

The decade during which the growth rates of monetary aggregates diverged the most is

The M2 monetary aggregate contains everything that is in M1 plus other assets that are highly ________ (can be turned into cash quickly at very little cost).

A disadvantage of ________made from precious metals is that it is very heavy and hard to transport from one place to another.

________ is the relative ease and speed with which an asset can be converted into a medium of exchange.

Ranking assets from most liquid to least liquid, the correct order is

Patrick places his pocket change into his savings bank on his desk each evening. By his actions, Patrick indicates that he believes that money is a

If an individual moves money from a small-denomination time deposit to a demand deposit account,

Kevin purchasing concert tickets with his debit card is an example of the ________ function of money.

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

________ is a flow of earnings per unit of time.

Money is

Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.

If the price level doubles, the value of money

Dennis notices that jackets are on sale for $99. In this case money is functioning as a

________ money could be used for some other purpose other than as a medium of exchange, for example, gold coins could be melted down and turned into gold jewelry.