Exam 3: What Is Money

Which of the following is NOT included in the M1 measure of money but is included in the M2 measure of money?

A smart card is the equivalent of

Of the following assets,the least liquid is

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

The conversion of a barter economy to one that uses money

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

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

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

Because it is a unit of account,money

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

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

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

Which of the following is included in both M1 and M2?

Which of the following is included in M2 but NOT in M1?

________ 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.

An individual's annual salary is her

Which of the following statements best explains how the use of money in an economy increases economic efficiency?

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

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

The currency component includes paper money and coins held in