Exam 3: What Is Money

________ 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.

A smart card is the equivalent of

A feature of Bitcoin,a new type of electronic money,that make it attractive as a medium of exchange is

Which of the following sequences accurately describes the evolution of the payments system?

When economists say that money promotes ________,they mean that money encourages specialization and the division of labor.

Introduction of checks into the payments system reduced the costs of exchanging goods and services.Another advantage of checks is that

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

If an individual moves money from a savings deposit account to a money market deposit account

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

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

Compared to checks,paper currency and coins have the major drawbacks that they

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

The payments system is

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

Because inflation in Germany after World War I sometimes exceeded 1,000 % per month,one can conclude that the German economy suffered from

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

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

Increasing transactions costs of selling an asset make the asset

Defining money becomes ________ difficult as the pace of financial innovation ________.