1 To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt.

• A) wealth

• B) income

• C) money

• D) credit

2 Money is

• A) anything that is generally accepted in payment for goods and services or in the repayment of debt.

• B) a flow of earnings per unit of time.

• C) the total collection of pieces of property that are a store of value

• D) always based on a precious metal like gold or silver.

3 Currency includes

• A) paper money and coins

• B) paper money, coins, and checks.

• C) paper money and checks.

• D) paper money, coins, checks, and savings deposits.

4 Even economists have no single, precise definition of money because

• A) money supply statistics are a state secret

• B) the Federal Reserve does not employ or report different measures of the money supply

• C) the "moneyness" or liquidity of an asset is a matter of degree.

• D) economists find disagreement interesting and refuse to agree for ideological reasons

5 The total collection of pieces of property that serve to store value is a person's

• A) wealth.

• B) income.

• C) money.

• D) credit

6 A person's house is part of her

• A) money

• B) income

• C) liabilities.

• D) wealth.

7 ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value.

• A) Money; income

• B) Wealth; income

• C) Income; money

• D) Money; wealth

8 ________ is a flow of earnings per unit of time

• A) Income

• B) Money

• C) Wealth

• D) Currency

9 An individual's annual salary is her

• A) money

• B) income

• C) wealth.

• D) liabilities

10 When we say that money is a stock variable, we mean that

• A) the quantity of money is measured at a given point in time

• B) we must attach a time period to the measure.

• C) it is sold in the equity market

• D) money never loses purchasing power