Exam 3: What Is Money

Explain the relationship between currency and the M1+ monetary aggregate.What does the "plus" sign represent?

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

Which of the following is not included in the M2 measure of money but is included in the M3 measure of money?

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

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

If there are five goods in a barter economy,one needs to know ten prices in order to exchange one good for another.If,however,there are ten goods in a barter economy,then one needs to know ________ prices in order to exchange one good for another.

A problem with barter exchange when there are many goods is that in a barter system ________.

If an individual moves money from currency to a personal deposit account,________.

If an individual moves money from a notice deposit to a chequing account,________.

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

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 all of the following except ________.

Money ________ transaction costs,allowing people to specialize in what they do best.

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

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

All but the most primitive societies use money as a medium of exchange,implying that ________.

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

If the price level doubles,the value of money ________.

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

Currency includes ________.

The measures of money supply used by the Bank of Canada are ________ indices.