Fiat Money, Function of Money, Medium of Exchange, Principles of Macroeconomics Final
The key words in this Macroeconomics course include Fiat Money, Cash, Function of Money, Medium of Exchange, Deposits, Balance Sheet, High Intrinsic Value, Liabilities, Principles of Macroeconomics.
What function of money is highlighted when Sally pays her cell phone bill with cash?
commodity money
medium of exchange
fiat money
store of value
unit of account
Money does NOT function as a(n)
store of value.
item to barter.
unit of account.
medium of exchange.
means to buy goods and services.
Refer to the following table to answer the following questions:
| Checkable deposits | $800,500,000 |
| Currency | $340,000,000 |
| Traveler’s checks | $10,000,000 |
| Money market mutual funds | $78,000,000 |
| Small time deposits | $15,000,000 |
| Savings deposits | $252,000,000 |
What is the value of M2 that is not part of M1?
$345,000,000
$1,150,500,000
$1,495,500,000
$93,000,000
$78,000,000
Refer to the following table to answer the following questions:
| Checkable deposits | $800,500,000 |
| Currency | $340,000,000 |
| Traveler’s checks | $10,000,000 |
| Money market mutual funds | $78,000,000 |
| Small time deposits | $15,000,000 |
| Savings deposits | $252,000,000 |
What is the value of M2?
$78,000,000
$1,150,500,000
$93,000,000
$1,495,500,000
$345,000,000
Which of the following is NOT a characteristic of fiat money?
serves as a unit of account
always backed by something of high intrinsic value
provides a way to store wealth over time
generally acceptable as a medium of exchange
changes in value over time as the amount of fiat money changes
Tom Goldman deposits $1,000 in newly printed birthday cash into his checking account at the bank. How would this be recorded on the bank’s balance sheet?
There will be no initial change to assets and liabilities.
Assets and liabilities will both rise by $1,000.
Assets will fall by $1,000 and liabilities will rise by $1,000.
Assets will rise by $1,000 and liabilities will fall by $1,000.
Assets and liabilities will both fall by $1,000.