Exam 3: What Is Money

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.

When compared to exchange systems that rely on money,disadvantages of the barter system include

Money is

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

Even economists have no single,precise definition of money because

________ is the narrowest monetary aggregate that the Fed reports.

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of

The total collection of pieces of property that serve to store value is a person's

A hyperinflation is

In a barter economy the number of prices in an economy with N goods is

Which of the following is NOT included in the monetary aggregate M2?

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

If an individual redeems a U.S.savings bond for currency

Compared to an economy that uses a medium of exchange,in a barter economy

The M1 measure of money includes

Whatever a society uses as money,the distinguishing characteristic is that it must

Kevin purchasing concert tickets with his debit card is an example of the ________ function of money.

________ are the time and resources spent trying to exchange goods and services.

If peanuts serve as a medium of exchange,a unit of account,and a store of value,then peanuts are

For a commodity to function effectively as money it must be