Money _part 1

In defining money as M1, economist exclude fixed deposits on the ground that

• they are not recognized by government as legal tender

• they are not directly or immediately a medium or exchange

• the purchasing power is less stable than other currency

• the intrinsicf value of oxed deposits is nil

anything which is widely accepted as payment for goods and services is a

• medium of exchange

• store of value

• unit of account

• standard of deferred payment

Which of the following is NOT a function of money

• storage of value

• unit of account

• medium of exchange

• source of credit

barter transactions

• involve exchanging goods for other goods

• occur without the double coincidence of wants

• are less costly than transaction involving money

• involve the use of money

The use of a ringgit bill to buy a plane ticket represents the use of money as a

• means of payment

• unit of account

• store of vale

• all of the abobe

when you put the money in a cookie jar, which function of money are you using

• medium of exchange

• store of value

• unit of account

• none of the above

using money as a mechanism for transforming current income into the future purchases is referred to as the

• medium of exchange

• store of value

• standard of deferred payment

• standard of value

Money

• is more efficient than barter

• makes trades easier

• allows greater specialization

• all of the above are correct

currency includes

• paper money and coins

• demand deposits

• credit card

• both a n b are correct

saving deposits are included in

• M1 but not M2

• M2 but not M1

• M1 and M2

• Neither M1 nor M2