ECON 1100 Lecture Notes - Quantitative Easing, Deposit Insurance, Financial Institution

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lavenderyak321

8 Apr 2013

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Money- any asset that an be used as a means of payment for purchases and to settle debts. Commodity money- an asset with intrinsic value, such as a gold or silver coin, that is generally accepted as a means of payment for purchases and to settle debts. Fiat money- as asset with no intrinsic value, such as paper currency, that is generally accepted as a means of payment for purchases and to settle debts. Three principal uses of money: medium of exchange, unit of account, store of value. Medium of exchange- an asset used in purchasing goods and services. Barter- the direct trade of goods and services. Unit of account- a basic measure of economic value. Store of value- an asset that serves as a means of holding wealth. Two measuers of the money supply of considerable historic significance are a naarow measure m1 and the broader measure m2.

Related Questions

The buyers and sellers in the country of perylia use corn as a medium of exchange. This means that:

A. corn can be used as a store of value but not as a unit of account in Perylia
B. Perylia uses Fiat money
C. corn cannot be used as a store of value or as a unit of account in Perylia
D. Perylia uses commodity money.

viridiandog782

1. If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as:

a. A medium of exchange.

b. A store of value.

c. A unit of account.

d. An economic investment.

2. To say that coins are "token money" means that:

a. Their face value is less than their intrinsic value.

b. Their face value is greater than their intrinsic value.

c. Their face value is equal to their intrinsic value.

d. They are not legal tender.

brownsea-lion330

1. To say money is socially defined means that:

A) the money supply includes all public and private securities purchased by society.

B) whatever performs the functions of money extremely well is considered to be money.

C) society, acting through Congress, specifies what shall be included in the money supply.

D) money has been defined in a Constitutional amendment.

2. Money functions as:

A) a medium of exchange.

B) a store of value.

C) a unit of account.

D) all of these.

3. If you are estimating your total expenses for school next semester, you are using money primarily as:

A) a store of value.

B) an economic investment.

C) a unit of account.

D) a medium of exchange.

4. If you place a part of your summer earnings in a savings account, you are using money primarily as a:

A) medium of exchange.

B) store of value.

C) standard of value.

D) unit of account.

5. If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as:

A) a store of value.

B) a medium of exchange.

C) a unit of account.

D) an economic investment.

6. A $70 price tag on a sweater in a department store window is an example of money functioning as a:

A) standard of deferred payments.

B) medium of exchange.

C) unit of account.

D) store of value.

7. Stock market price quotations best exemplify money serving as a:

A) index of satisfaction.

B) store of value.

C) medium of exchange.

D) unit of account.

8. Purchasing common stock by writing a check best exemplifies money serving as a:

A) medium of exchange.

B) unit of account.

C) index of satisfaction.

D) store of value.

crimsonalligator541

ECON 1100 Lecture Notes - Quantitative Easing, Deposit Insurance, Financial Institution

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