Question

Choose one of the phrases for each statement.

1. a) When giving consideration to a crypto-currency like Bitcoin, we can say that is or is not a store of value, one of the functions of money?

2. b) When giving consideration to a crypto-currency like Bitcoin, we can say that is or is not a medium of exchange, one of the functions of money?

3. c) Raising funds for your startup through Kickstarter, a “funding platform”, is direct or indirect finance?

4. d) Borrowing money through Lending Club (www.lendingclub.com) is direct or indirect finance.

5. e) By total value of assets, private pension funds or mutual funds are collectively the larger

   intermediaries in the United States based on our most recent data from class.

6. f) By total value of assets, debt or equity capital markets are collectively larger in the United States based on our most recent data from class.

7. g) If people transfer funds from saving accounts to checking accounts, M1 will or will not increase.

8. h) If people transfer funds from saving accounts to checking accounts, M2 will or will not decrease.

Answer 1

a) This is a store of value

Explanation: Bitcoin can be used to store economic value for future usage.

b) Is a medium of exchange

Explanation: Bitcoin can be used to buy goods and services when it is recognized by both parties.

c) Indirect finance

Explanation: In direct finance, the borrower borrows from the lender directly without a third party or an intermediary.

D) Indirect finance

Explanation: In direct finance, the borrower borrows from the lender directly without a third party or an intermediary.