When is fiat money essential as a medium of exchange? Is the OLG model useful to think about fiat money? Explain.
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When is fiat money essential as a medium of exchange? Is the OLG model useful to...
Gold used as Money: Is commodity money Would be a medium of exchange Has no intrinsic value Both A and B are correct. Funds in your checking account: Would be included in your list of assets Is a medium of exchange Is fiat money All of the above are true
Fiat money A. is otherwise valueless paper made money by law. B. has value in addition to being money. C. does not function as a store of value. D. does not function as a medium of exchange. E. has always been the money in use in the United States.
Money is anything that serves asa_ OUnit of account Store of value O Medium of exchange O None of the above. QUESTION 20 Which one of the following is fiat money? OA Federal Reserve Note OA candy bar A gold bar OA credit card QUESTION 21 If the reserve ratio is 10 percent, $1,400 of additional reserves can create up to $140 of new money $14,000 of new money $140,000 of new money. O None of the above is correct.
True of False.c) According to the theory of liquidity preference, interest rates should go up when there is a decrease in money supply. d) Credit Cards are considered money because they are a medium of exchange. e) Gold is an example of fiat money.
The medium of exchange function of money Select one: a. means that money acts as an intermediary between buyers and sellers. b. relates to the fact that people measure prices using money. c. relates to the fact that money represents future purchasing power.
1.) Gold, silver, and furs, when used as money, are referred to as fiat money precious money paper currency commodity money exchange money 2.) The money supply is considered to be M1. M1 consists of what? currency + checking account balances + saving account balances currency + checking account balances + travelers' checks currency + checking account balances + credit cards currency + credit cards + certificates of deposit currency only 3.) The main purpose of financial intermediaries is that...
37. Which of the following is an example of money serving as a medium of exchange? a. Richard puts money into a piggy bank. b. Ellen deposits cash into a money market account. c. Sean puts a new $20 bill into his currency collection. d. Marian buys a carbo-loaded drink before a marathon.
24. The functions of money do not include acting as a. b. a medium of exchange. a standard of deferred payment. a unit of account. c. d. a store of value. ge of purchasing power.
Question 12 (1 point) Fiat money functions well only if can be redeemed for gold or other precious metals. can serve well as a medium of exchange, but not as a store of value. has no value or very little value except as money. O is rarely used in modern economies. Question 13 (1 point) U.S. labor force participation was increasing in the 1970s and 1980s. Which of these is (are) true? Female labor force participation was rising; male labor...
Money functions as 1) a store of value. il) unit of account ill) medium of exchange. iv) opportunity costs of money supply Multiple Choice iv only il and iv i only 1, ll, and it