SOL_CHAP_29 - SOL CHAP 29 MONETARY SYSTEM PART 1: Multiple...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
SOL CHAP 29 MONETARY SYSTEM PART 1: Multiple choices: 1. Paper money a.has a high intrinsic value. b.is the primary medium of exchange in a barter economy. c.is valuable because it is generally accepted in trade. d.is valuable only because of the legal tender requirement. ANS: C PTS: 1 DIF: 1 REF: 29-1 TOP: Money MSC: Definitional 2. Consider the following traders who meet. Bob has an apple wants an orange Ted has an orange wants a peach Mary has a pear wants an apple Alice has a peach wants an orange Which if any pairs have a double coincidence of wants? a.Bob with Alice b.Ted with Alice c.Bob with Mary, Ted with Bob, and Ted with Alice d.None of the pairs above have a coincidence of wants with each other ANS: B PTS: 1 DIF: 1 REF: 29-1 TOP: Double-coincidence of wants MSC: Applicative 3.The existence of money leads to a.greater specialization in production, but not a higher standard of living. b.a higher standard of living, but not greater specialization. c.greater specialization and a higher standard of living. d.neither greater specialization or a higher standard of living. ANS: C PTS: 1 DIF: 1 REF: 29-1 TOP: Money MSC: Definitional 4. Changes in the quantity of money affect a.interest rates b.prices c.production d.All of the above are correct ANS: D PTS: 1 DIF: 1 REF: 29-1 TOP: Monetary policy MSC: Definitional
Background image of page 1

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

View Full DocumentRight Arrow Icon
5. Which of the following best illustrates the unit of account function of money? a.You list prices for candy sold on your Web site, www.sweettooth.com, in dollars. b.You pay for your WNBA tickets with dollars. c.You keep $10 in your backpack for emergencies. d.None of the above is correct. ANS: A PTS: 1 DIF: 1 REF: 29-1 TOP: Unit of account MSC: Interpretive 6. Which of the following best illustrates the medium of exchange function of money? a.You keep some money hidden in your shoe. b.You keep track of the value of your assets in terms of currency. c.You pay for your double latte using currency. d.None of the above is correct. ANS: C
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

SOL_CHAP_29 - SOL CHAP 29 MONETARY SYSTEM PART 1: Multiple...

This preview shows document pages 1 - 3. Sign up to view the full document.

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