Hw6SOLVED - Show Feedback | Table of Contents Time...

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Show Feedback | Table of Contents Time Remaining: 0:49:51 Part 1 of 1 - Question 1 of 50 1.0 Points <!--000021--> Commodity money was a step toward efficiency, but it was undermined frequently by: A. frequent relapse into barter. B. the vagaries of supply and demand for the commodity that served as money. C. the inability of people to agree to one commodity. D. the inability to find a commodity that was not perishable. E. none of the above. Reset Selection COMMODITY MONEY IS MONEY MADE UP OF A COMMODITY THAT IS INTRINSICALLY VALUABLE (GOLD, SILVER, ETC),. BETTER THAN BARTER, GENERALLY DURABLE, BUT THE SUPPLY DEPENDED ON LUCK (GOLD FINDS) HENCE BIG VARIATIONS AND ATTENDANT PROBLEMS B MODERN FIAT MONEY IS EASILY CONTROLLED Question 2 of 50 1.0 Points <!--000047--> The present discounted value of $100 payable 1 year from now, assuming a market rate of interest of 10 percent, is: A. $100. B. $10. C. $90. D. slightly less than $90. E. slightly more than $90. PHOOEY – THIS IS RIGHT FROM THE BOOK. THE PV OF FUTURE MONEY IS THE AMOUNT THAT YOU COULD PUT IN THE BACK TODAY TO RECEIVE THE FUTURE AMT IN THE FUTURE. PV=FV/(1+r)^n =100/(1+.1)^1 (WHERE ^ DENOTES RAISING TO A POWER) = 100/1.1 = 90.9 E Question 3 of 50 1.0 Points <!--000017--> Savings accounts are considered "near-monies" because: A. their physical location is "near" the money. B. most people have savings accounts. C. recent changes in the law have allowed interest on checking. D. you can turn them into cash in a relatively short amount of time. E. all of the above.
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Question 4 of 50 1.0 Points <!--000045--> All forms of money are valuable in their own right. A. True B. False Reset Selection NO, ONLY COMMODITY MONEY IS – FIAT MONEY (PAPER) IS NOT Question 5 of 50 1.0 Points <!--000015--> When we speak of expressing the prices of goods in an economy, we are speaking primarily of money's role as: A. a store of value or wealth. B. a precautionary hedge. C. a medium of exchange. D. a unit of account. E. none of the above. Reset Selection DEFINITION – UNIT OF ACCOUNT; WE MEASURE PRICES IN TERMS OF HOW MANY $ SOMETHING COSTS (NOT HOW MANY CHICKENS OR BOOKS) Question 6 of 50 1.0 Points <!--000004--> A bank may count toward its reserve requirements its: A. money on deposit with a Federal Reserve Bank plus vault cash. B. the total amount of liquid assets held in the vault. C. vault cash and government securities. D. vault cash plus capital account. E. the total of all assets held as security against deposits. Reset Selection DEFINITION – A . MOST OF RESERVES IN ‘CHECKING ACCOUNT’ BANKS HAVE WITH THE FED Question 7 of 50 1.0 Points <!--000044--> The inconvenience of the barter system comes from the need for a double coincidence of wants. A. True
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This document was uploaded on 10/28/2011 for the course 220 103 at Rutgers.

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Hw6SOLVED - Show Feedback | Table of Contents Time...

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