Econ 1500 Exam Questions With Correct
Answers
Which of the following are characteristics of fiat money? - CORRECT
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ANSWER✔✔-It is ordered by some authority to be accepted as a medium of
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exchange.
It has no intrinsic value.
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Which of the following is something that serves as a way of preserving economic
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value that can be spent or consumed in the future? - CORRECT ANSWER✔✔-store
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value
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A ______ is a bill or other currency whose value is backed up by gold or some
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other commodity held at a bank. - CORRECT ANSWER✔✔-commodity-backed
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currency
Which of the following is the best definition of the term standard of deferred
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payment? - CORRECT ANSWER✔✔-A standard of deferred payment is the
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requirement that money must be acceptable to make purchases today that will
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be paid for in the future.
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Which of the following is the best definition of commodity money? - CORRECT
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ANSWER✔✔-Commodity money is an item used as money, but which also has | | | | | | | | | | | |
value from its use as something other than money.
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, Which function of money means "a consistent means of measuring the value of
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things"? - CORRECT ANSWER✔✔-Money serves as a unit of account.
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What term is best defined as the government-declared legal tender of a country?
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- CORRECT ANSWER✔✔-Fiat money
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Which of the following is an example of a commodity money? - CORRECT
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ANSWER✔✔-a gold bar | |
What term is best defined as a checkable deposit in a bank that is available by
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making a cash withdrawal or writing a check? - CORRECT ANSWER✔✔-Demand
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deposit
Which description best fits the definition of time deposit? - CORRECT
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ANSWER✔✔-A time deposit is an account that the depositor has committed to
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leaving in the bank for a certain period of time in exchange for a higher rate of
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interest.
Buying a good through barter means? - CORRECT ANSWER✔✔-exchanging it for
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another good or service | | |
Which of the following is an example of commodity money? - CORRECT
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ANSWER✔✔-all of the above | | |
The M2 definition of money supply includes: - CORRECT ANSWER✔✔-all of the
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above
Answers
Which of the following are characteristics of fiat money? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-It is ordered by some authority to be accepted as a medium of
| | | | | | | | | | | | |
exchange.
It has no intrinsic value.
| | | |
Which of the following is something that serves as a way of preserving economic
| | | | | | | | | | | | | |
value that can be spent or consumed in the future? - CORRECT ANSWER✔✔-store
| | | | | | | | | | | |
value
|
A ______ is a bill or other currency whose value is backed up by gold or some
| | | | | | | | | | | | | | | | |
other commodity held at a bank. - CORRECT ANSWER✔✔-commodity-backed
| | | | | | | | |
currency
Which of the following is the best definition of the term standard of deferred
| | | | | | | | | | | | | |
payment? - CORRECT ANSWER✔✔-A standard of deferred payment is the
| | | | | | | | | |
requirement that money must be acceptable to make purchases today that will
| | | | | | | | | | | |
be paid for in the future.
| | | | |
Which of the following is the best definition of commodity money? - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-Commodity money is an item used as money, but which also has | | | | | | | | | | | |
value from its use as something other than money.
| | | | | | | |
, Which function of money means "a consistent means of measuring the value of
| | | | | | | | | | | | |
things"? - CORRECT ANSWER✔✔-Money serves as a unit of account.
| | | | | | | | |
What term is best defined as the government-declared legal tender of a country?
| | | | | | | | | | | |
- CORRECT ANSWER✔✔-Fiat money
| | | |
Which of the following is an example of a commodity money? - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-a gold bar | |
What term is best defined as a checkable deposit in a bank that is available by
| | | | | | | | | | | | | | | |
making a cash withdrawal or writing a check? - CORRECT ANSWER✔✔-Demand
| | | | | | | | | | |
deposit
Which description best fits the definition of time deposit? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-A time deposit is an account that the depositor has committed to
| | | | | | | | | | | |
leaving in the bank for a certain period of time in exchange for a higher rate of
| | | | | | | | | | | | | | | | |
interest.
Buying a good through barter means? - CORRECT ANSWER✔✔-exchanging it for
| | | | | | | | | | |
another good or service | | |
Which of the following is an example of commodity money? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-all of the above | | |
The M2 definition of money supply includes: - CORRECT ANSWER✔✔-all of the
| | | | | | | | | | | |
above
