chp 9,11,13 study

# chp 9,11,13 study - Study Set 9,11,13 MULTIPLE CHOICE...

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Study Set 9,11,13 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The functions of money are 1) _______ A) medium of exchange, unit of account, and store of value. B) medium of exchange and the ability to buy goods and services. C) pricing, contracts, and means of payment. D) medium of exchange, unit of account, and means of payment. 2) Which of the following is a primary function of money? 2) _______ A) to serve as an encouragement to work B) to reduce the burden of excessive imports C) to raise funds for the government D) to serve as a unit of account 3) In a barter system, we would see 3) _______ A) wide - spread depository institutions. B) goods traded directly for other goods and services. C) money and goods exchanged for each other. D) many different units of money. 4) Which of the following is an example of using money as a store of value? 4) _______ A) paying for a new dress with a credit card B) keeping \$200 on hand for an emergency C) paying cash for a new automobile D) paying rent with a check on a demand deposit 5) Checks are 5) _______ A) not money, but credit cards are. B) money, as are credit cards. C) not money, and neither are credit cards. D) money, but credit cards are not. 6) Which of the following equations represents the equation of exchange? 6) _______ A) M = VP/Y B) MY = PV C) PM = VY D) MV = PY 7) An increase in the quantity of money leads to a proportional increase in the price level according to the 7) _______ A) quantity theory of money. B) short - run velocity model. C) equation of exchange.

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chp 9,11,13 study - Study Set 9,11,13 MULTIPLE CHOICE...

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