14 which of the following are not contractual savings

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14) Which of the following are NOT contractual savings institutions? A) life insurance companies B) credit unions C) pension funds D) state and local government retirement funds - Depository institutions: Commercial banks / Savings and loans associations / Credit Unions - Contractual savings institutions: Life and casualty insurance / Pension funds - Investment intermediaries: Mutual and Money market mutual funds / Finance companies / Investment banks (Solution)
Ch3. What Is Money?
1) Currency includes
(Solution) By definition, currency includes paper money and coins, (not checks)
2) ________ is used to make purchases while ________ is the total collection of assets that serve to store value.
(Solution) Money is different from income and wealth. Wealth == Total collection of pieces assets such as bonds, stock, land, and houses , etc.
3) ________ are the time and resources spent trying to exchange goods and services.
(Solution) Transaction costs involve in any case of exchanging or trading.
4) Dennis notices that jackets are on sale for $99. In this case money is functioning as a A) medium of exchange. B) unit of account. C) store of value. D) payments-system ruler.
(Solution) Functions of Money, p50 Three functions of money 1. Medium of exchange 2. Unit of account 3. Store of Value (although not a good one, but liquid)
5) Of the following assets, the least liquid is
(Solution) Liquidity means how easy a financial instrument can be traded as cash.
6) The M1 measure of money includes
7) If an individual moves money from a small-denomination time deposit to a checking deposit account
(Solution) Take one out of M2, and put the one into M1. M2 M1

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