CLEMSON ECON 2120 FINAL EXAM
QUIZZES WITH ANSWERS |GRADED A+ .
Money - Correct Answer -is any commodity (such as gold) or token ($10) that is generally
accepted as means of payment
Commodity or Token - Correct Answer -money is something that can be recognized, and can
be divided up into small parts.
Means of Payment - Correct Answer -is a method of settling a debt. You can buy a car with a
loan and pay the loan in the due date. Money is used to pay off the loan.
Money performs three vital functions - Correct Answer -medium of exchange, unit of
account, store of value
Medium of exchange - Correct Answer -is an object that is generally accepted in return for
goods and services.
Barter - Correct Answer -without money, you would have to exchange goods and services
directly for other goods and services and exchange.
Unit of Account - Correct Answer -Is an agreed-upon measure for stating the prices of goods
and services.
Fiat money - Correct Answer -is objects that are money because the law decrees or orders
them to be money.
The objects that we use as money today are - Correct Answer -currency; deposits at banks
and other financial institutions
Currency - Correct Answer -The notes (dollar bills) and coins that we use in the United States
today
1
,Deposits - Correct Answer -are money because they can be converted into currency on
demand and are used directly to make payments.
Currency inside the banks is not money - Correct Answer -when you get some cash from the
ATM, you convert your bank deposit into currency.
Official Measure of Money:M1 - Correct Answer -consists of currency by individuals and
businesses, traveler's checks, and checkable deposits owned by individuals and businesses.
Official Measure of Money:M2 - Correct Answer -consists of M1 plus savings deposits and
small time deposits, money market funds, and other deposits.consists of M1 plus savings
deposits and small time deposits, money market funds, and other deposits.
A money market fund - Correct Answer -(also known as money market mutual fund) is an
open-ended mutual fund that invests in short-term debt securities. An investment fund that
holds the objective to earn interest for shareholders while maintaining a net asset value
(NAV) of $1 per share.
What is money market funds purpose? - Correct Answer -is to provide investors with a safe
place to invest easily accessible cash-equivalent assets characterized as a low-risk, low-return
investment.
Time deposit - Correct Answer -A bank deposit that cannot be withdrawn before a date
specified at the time of deposit.
M1 - Correct Answer -• Currency and traveler's checks
• Checkable deposits
M2 - Correct Answer -M1
Savings deposits
Small time deposits
Money market funds and other deposits
2
, Are M1 and M2 Means of Payment? - Correct Answer -The test of whether something is
money is whether it is generally accepted as a means of payment.
M1 passes this test and is money.
Some savings deposits in M2 are just as much a means of payment as the checkable deposits
in M1.
Checks - Correct Answer -Not money. It is an instruction to a bank to make a payment
Credit Cards - Correct Answer -is not money becuse it does not make a payment
Debit Cards - Correct Answer -Not money. It is like an electronic check.
Mobile Wallet - Correct Answer -is an electronic version of a physical wallet.
An Embryonic New Money: E-Cash - Correct Answer -Electronic cash (or e-cash) is an
electronic equivalent of
paper notes (dollar bills) and coins.
The banking system consists of - Correct Answer -The Federal Reserve
The banks and other institutions that accept deposits and that provide the services that enable
people and businesses to make and receive payments.
The FederalReserve regulates and influences - Correct Answer -the activities of the
commercial banks,thrift institutions, and money market funds, whose deposits make up the
nation's money.
Commercial bank - Correct Answer -is a firm that is licensed by the Comptroller of the
Currency in the U.S. Treasury (or by a state agency) to accept deposits and make loans.
A commercial bank accepts three types of deposits: - Correct Answer -checkable deposits,
saving deposits, and time deposits
Checkable deposits - Correct Answer -Any demand deposit account against which checks or
drafts of any kind may be written.
3
QUIZZES WITH ANSWERS |GRADED A+ .
Money - Correct Answer -is any commodity (such as gold) or token ($10) that is generally
accepted as means of payment
Commodity or Token - Correct Answer -money is something that can be recognized, and can
be divided up into small parts.
Means of Payment - Correct Answer -is a method of settling a debt. You can buy a car with a
loan and pay the loan in the due date. Money is used to pay off the loan.
Money performs three vital functions - Correct Answer -medium of exchange, unit of
account, store of value
Medium of exchange - Correct Answer -is an object that is generally accepted in return for
goods and services.
Barter - Correct Answer -without money, you would have to exchange goods and services
directly for other goods and services and exchange.
Unit of Account - Correct Answer -Is an agreed-upon measure for stating the prices of goods
and services.
Fiat money - Correct Answer -is objects that are money because the law decrees or orders
them to be money.
The objects that we use as money today are - Correct Answer -currency; deposits at banks
and other financial institutions
Currency - Correct Answer -The notes (dollar bills) and coins that we use in the United States
today
1
,Deposits - Correct Answer -are money because they can be converted into currency on
demand and are used directly to make payments.
Currency inside the banks is not money - Correct Answer -when you get some cash from the
ATM, you convert your bank deposit into currency.
Official Measure of Money:M1 - Correct Answer -consists of currency by individuals and
businesses, traveler's checks, and checkable deposits owned by individuals and businesses.
Official Measure of Money:M2 - Correct Answer -consists of M1 plus savings deposits and
small time deposits, money market funds, and other deposits.consists of M1 plus savings
deposits and small time deposits, money market funds, and other deposits.
A money market fund - Correct Answer -(also known as money market mutual fund) is an
open-ended mutual fund that invests in short-term debt securities. An investment fund that
holds the objective to earn interest for shareholders while maintaining a net asset value
(NAV) of $1 per share.
What is money market funds purpose? - Correct Answer -is to provide investors with a safe
place to invest easily accessible cash-equivalent assets characterized as a low-risk, low-return
investment.
Time deposit - Correct Answer -A bank deposit that cannot be withdrawn before a date
specified at the time of deposit.
M1 - Correct Answer -• Currency and traveler's checks
• Checkable deposits
M2 - Correct Answer -M1
Savings deposits
Small time deposits
Money market funds and other deposits
2
, Are M1 and M2 Means of Payment? - Correct Answer -The test of whether something is
money is whether it is generally accepted as a means of payment.
M1 passes this test and is money.
Some savings deposits in M2 are just as much a means of payment as the checkable deposits
in M1.
Checks - Correct Answer -Not money. It is an instruction to a bank to make a payment
Credit Cards - Correct Answer -is not money becuse it does not make a payment
Debit Cards - Correct Answer -Not money. It is like an electronic check.
Mobile Wallet - Correct Answer -is an electronic version of a physical wallet.
An Embryonic New Money: E-Cash - Correct Answer -Electronic cash (or e-cash) is an
electronic equivalent of
paper notes (dollar bills) and coins.
The banking system consists of - Correct Answer -The Federal Reserve
The banks and other institutions that accept deposits and that provide the services that enable
people and businesses to make and receive payments.
The FederalReserve regulates and influences - Correct Answer -the activities of the
commercial banks,thrift institutions, and money market funds, whose deposits make up the
nation's money.
Commercial bank - Correct Answer -is a firm that is licensed by the Comptroller of the
Currency in the U.S. Treasury (or by a state agency) to accept deposits and make loans.
A commercial bank accepts three types of deposits: - Correct Answer -checkable deposits,
saving deposits, and time deposits
Checkable deposits - Correct Answer -Any demand deposit account against which checks or
drafts of any kind may be written.
3
