Money and Financial Systems

The value of the multiplier will increase if

• autonomous investment increases.
• induced investment increases.
• the MPC decreases.
• the MPS decreases.

This function of money allows people to transfer purchasing power from the present to the future.

• medium of exchange
• unit of account
• store of value
• liquidity

This function of money is money as a "yardstick," a way to measure the relative worth of a variety of products.

• medium of exhange
• unit of account
• store of value
• liquidity

This function of money allows you to use it purchase the goods and services you need and want.

• medium of exchange
• unit of account
• store of value
• liquidity

This term refers to the ease with which you can convert an asset to cash with little or no loss of purchasing power.

• legal tender
• acceptability
• liquidity
• uniformity

This characteristic of money refers to the ability to carry it with you---lightweight and easy to transport.

• portability
• uniformity
• acceptability
• stability

This characteristic of money refers to ability to retain its value---it is not too prone to inflation or deflation.

• portability
• acceptability
• stability in value
• durability

This is money that has another useful purpose.

• fiat
• commodity
• debt
• securities

This is money by decree; it works because the government says it is legal tender and you believe it has purchasing power.

• fiat
• commodity
• securities
• mortgage

This classification of money includes coins, paper money, checkable deposits.

• M1
• M2
• M3