ch4--practice questions

ch4--practice questions - Name: _ Date: _ 1. People use...

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Name: __________________________ Date: _____________ 1. People use money as a medium of exchange when they: A) hold money to transfer purchasing power into the future. B) use money as a measure of economic transactions. C) use money to buy goods and services. D) hold money to gain power and esteem. 2. Currency equals: A) M 1. B) the sum of funds in checking accounts. C) the sum of checking accounts and paper money. D) the sum of coins and paper money. 3. The definition of the transactions velocity of money is: A) money multiplied by prices divided by transactions. B) transactions divided by prices multiplied by money. C) money divided by prices multiplied by transactions. D) prices multiplied by transactions divided by money. 4. The income velocity of money: A) is defined in the identity MV = PY . B) is defined in the identity MV = PT . C) is the same thing as the transactions velocity of money. D)
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ch4--practice questions - Name: _ Date: _ 1. People use...

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