Chapter 5 Multiple Choice

Why are traveler checks considered a form of money

They are widely accepted in payments for goods and services.

Which of the following makes up most of the U.S. money supply

checking accounts

Electronic funds transfers involving:

making and receiving payments via computers and other automated means.

The main idea of this chapter is that:

money serves as a medium of exchange for a way of calculating value and a method of saving

Suppose that you melted down $100 in quarters what would be the value of the metal :

much less than $100.

In a barter economy

people exchange goods and services for the things they want

Your local bank finds itself running short of the $1,$5,and $10 bills it will need to take care of its customers' needs, Where is it most likely to go to stock up on this currency

the Federal Reserve Bank of its district

Which of the following people is the endorser of a check is the one who:

the one who writes his or her name on the back of the check

Under which of the following circumstances would beads be considered money

you could buy something with them anywhere