Money

What are the functions of money?

• Medium of exchange

• Unit of account

• Store of value

• All of the above

What is meant by "money is a medium of exchange?"

• Money is a social invention with which resource suppliers and producers can be paid and that can be used to buy items in the marketplace

• Society uses monetary units as a yardstick for measuring the worth of a variety of goods, services, and resources.

• Enables people to transfer purchasing power from the present to the future.

What is meant by "money is a unit of account"?

• Enables people to transfer purchasing power from the present to the future.

• Society uses monetary units as a yardstick for measuring the worth of a variety of goods, services, and resources.

• Money is a social invention with which resource suppliers and producers can be paid and that can be used to buy items in the marketplace.

What is meant by "money is a store of value"?

• Money is a social invention with which resource suppliers and producers can be paid and that can be used to buy items in the marketplace.

• Society uses monetary units as a yardstick for measuring the worth of a variety of goods, services, and resources.

• Enables people to transfer purchasing power from the present to the future.

What is M1? (select all that apply)

• Currency in the hands of the public

• All checkable deposits

• Near-monies

Who supplies coins and paper money?

• Government and government agencies

• Commercial banks and savings institutions

Who provides checkable deposits?

• Government and government agencies

• Commercial banks and savings institutions

Are currency and checkable deposits held by the U.S. Government included in M1?

• Yes

• No

Most of the nation's currency is

What is M2 (select all that apply)

• Currency

• Checkable deposits

• Near monies