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1) Which two of the following are normally counted as “money” by economists? Currency Real estate...

1) Which two of the following are normally counted as “money” by economists?

Currency Real estate Bonds Checking Account Balances Stocks      

2) Which of the following is not necessarily a function of money?

Unit of account Store of value Medium of exchange Item of intrinsic value

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Answer #1

1. Money is a medium for the exchange of goods and services. The functions of money are medium of exchange,store of value and unit of account. The M1 money supply is the most liquid money supply and it includes currency and notes in circulation plus the checking accounts.

Ans: Currency, checking accounts.

2. Ans: Item of intrinsic value.

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