CH. 27 ECON 1500

A demand deposit is a checkable deposit in a bank that is available by making a cash withdrawal or writing a check.

True

Money functions as a medium of exchange because it _______________________.

serves as an intermediary between the buyer and the seller

For barter to be possible between two people, it must be the case that________________________.

there is a double coincidence of wants

Cards which can store a certain value of money to be used for purchases such as a calling card or a gift card are called:

Smart cards

The table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total M2. Calculate in trillions and round to the third decimal point.

16.124

The table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total M1. Present the result in trillions and round to third decimal point.

6.104

The Federal Reserve System is responsible for tracking the amounts of M1 and M2 and prepares a weekly release of information about the money supply. The table below shows the U.S. money stock components of M1 and M2. Use the table to calculate total M1. Round to the third decimal place.

7.408

Money's function as a unit of account means that money _________________ .

a consistent means of measuring the value of things

Which of the following is an example of commodity money?

a silver coin cigarettes used in POW camps a gold bar

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 is called _____________.

a time deposit

In addition to be "a unit of account," which of the following is a function of money?

all of the above

The M1 money supply includes which of the following?

all of the above

The M2 definition of money supply includes:

all of the above

Which of the following is a part of the M1 money supply?

all of these

Buying a good through barter means?

exchanging it for another good or service

A type of money that is ordered by some authority to be accepted as a medium of exchange and has no intrinsic value is called:

fiat money

A money market mutual fund is __________ than ____________.

less liquid; a demand deposit less liquid; currency