Question

QUESTION 3 2.5 points If traveler's checks were $1000 higher and saving deposits were $500 higher. MI would be a $1.000 high and M2 would be $500 higher b. $500 higher aad M2 would be $1,500 higher. c.$1,000 higher and M2 would be $1,500 higher d. M2 and MI would be S1,500 higher. QUESTION 4 2.5 points The confidence you have that a retailer will accept dollars in exchange for goods is based primarily on money o a being a medium of exchange. b. being a unit of account @ c, having intrinsic value. d. serving as a store of value.

Answer 1

Q3
Answer
Option c
M1 includes taveler's check so it will be higher by $1000 and M2 includes travlers check and saving deposits so it will increase by $1500
M2=M1+ near money
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Q4
Answer
Option a
medium of exchange
Using dollar in exchange of good is a medium of exchange of function of money.
Using a tag to read the price is a unit of account function.
using the money to save to purchase the good is a store of value function