HW2_Ques

HW2_Ques - HW2 Multiple Choice Questions EC370 Fall 2008...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
HW2 Multiple Choice Questions EC370 – Fall 2008 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements uses the economists' definition of money? 1) _______ A) The job with New Company gave me the opportunity to earn more money. B) Betsy is rich she has a lot of money. C) I plan to earn a lot of money over the summer. D) I hope that I have enough money to buy my lunch today. 2) Of money's three functions, the one that distinguishes money from other assets is its function as a 2) _______ A) store of value. B) medium of exchange. C) unit of account. D) standard of deferred payment. 3) ________ is the relative ease and speed with which an asset can be converted into a medium of exchange. 3) _______ A) Deflation B) Liquidity C) Efficiency D) Specialization 4) 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 4) _______ A) a unique good for which there are no substitutes. B) backed by gold. C) extremely liquid. D) the only thing accepted in economic exchange. 5) Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money. 5) _______ A) commodity B) electronic C) fiat D) funny 6) With an interest rate of 6 percent, the present value of $100 next year is approximately 6) _______ A) $106. B)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

HW2_Ques - HW2 Multiple Choice Questions EC370 Fall 2008...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online