Exam 3: What Is Money

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

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

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

During hyperinflations,________.

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

A disadvantage of ________ is that it can be very heavy and hard to transport from one place to another.

Income is a ________ and wealth is a ________.

The evolution of the payments system from barter to precious metals,then to fiat money,then to cheques can best be understood as a consequence of the fact that ________.

The difference between money and income is that ________.

If an individual redeems a Canada savings bond for currency,________.

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 ________.

Monetary aggregates are ________.

An electronic payments system has not completely replaced the paper payments system because of all of the following reasons except ________.

Compared to cheques,paper currency and coins have the major drawbacks that they ________.

Which of the following is a true statement?

If an individual moves money from a money market mutual fund to currency,________.

Which of the following is not a form of e-money?

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

As the payments system evolves from barter to a monetary system,________.

The payments system is ________.