Exam 3: What Is 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

People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is

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

If the price level doubles,the value of money

Money is

Why are most of the U.S. dollars held outside of the United States?

A hyperinflation is

Kevin purchasing concert tickets with a $100 bill is an example of the ________ function of money.

During hyperinflations

If an individual moves money from currency to a demand deposit account

________ is the narrowest monetary aggregate that the Fed reports.

The difference between money and income is that

An electronic payments system has not completely replaced the paper payments system because of all of the following reasons EXCEPT

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

When money prices are used to facilitate comparisons of value,money is said to function as a

Recent financial innovation makes the Federal Reserve's job of conducting monetary policy

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).

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

Although ________ currency is lighter than coins made of metals,a disadvantage arising from modern technology is the ease of ________.

An advantage of checks as a method of payment is that