CH 2.3 ECON 2035
All of the following are characteristics of debit cards EXCEPT: A) payments are deferred until a later date. B) they can be used like checks. C) they eliminate the problem of trust since the bank's computer authorizes the transaction. D) when used at a store, the user's bank instantly credits the store's account with the amount and deducts it from the user's account.
A
All of the following are examples of electronic funds EXCEPT: A) credit cards. B) debit cards. C) ACH transactions. D) e-money.
A
Automatic teller machines and debit cards are examples of: A) electronic funds transfer systems. B) commodity monies. C) legal tender in the United States. D) modern barter systems.
A
In Sweden, cash accounts for ________ of transactions. A) only about 2 percent B) about 10 percent C) approximately 40 percent D) just under 90 percent
A
The payments system is: A) the mechanism for conducting economic transactions. B) another name for the system of foreign exchange rates. C) the phrase used to describe how transactions are carried out in an economy that does not use money. D) the way in which economic transactions are carried out in a government-controlled economy, such as the former Soviet Union.
A
Which of the following is NOT on the Fed's list of the five most desirable outcomes for a payments system? A) inflation-proof B) security C) efficiency D) speed
A
Which of the following is an example of a commodity money? A) gold coins B) dollar bills C) British pound notes D) Japanese yen notes
A
All of the following are problems associated with commodity money EXCEPT: A) it is a cumbersome form of payments system. B) commodities tend to have little value in and of themselves. C) its value is dependent on its purity. D) costs are incurred in certifying the purity and weight of commodity money.
B
All of the following statements regarding bitcoin transactions are true EXCEPT: A) no permanent record of bitcoin transactions exist. B) bitcoin transactions are now more prevalent than cash transactions. C) retailers pay a lower processing cost for bitcoin transactions than for credit card transactions. D) bitcoin transactions are final and unlike credit card transactions, cannot be disputed by the buyer.
B
Which of the following is a form of e-money? A) gold B) PayPal C) an American Express card D) traveler's checks
B
According to a Federal Reserve study, electronic payments now make up ________ of all noncash payments. A) 15 percent B) just under half C) more than two-thirds D) just under 90 percent
C
Bitcoin is a form of: A) commodity money. B) legal tender. C) e-money. D) all of the above.
C
Checks are: A) not acceptable for settling transactions in most industrialized countries. B) less important than currency as a means of settling transactions. C) promises to pay, on demand, money deposited with a financial institution. D) promises to pay, on demand, coins minted from precious metals.
C
The use of checks in transactions: A) entails lower information costs than the use of currency. B) entails fewer steps than settling transactions with currency. C) avoids the cost of transporting currency back and forth. D) entails fewer steps and lower information costs than settling transactions with currency
C
Which of the following is an example of fiat money? A) a cowry shell used as money on a South Pacific island B) a gold coin used as money in nineteenth century England C) a Federal Reserve Note used as money in the twenty-first century United States D) a pound of salt used as money in medieval France
C
All of the following are true in Sweden EXCEPT: A) many branches of Sweden's banks do not accept cash deposits. B) some stores have stopped accepting cash payments. C) many churches encourage parishioners to make donations using a mobile banking app. D) the government no longer issues paper currency.
D
Which of the following is NOT a step involved in using checks? A) The recipient must present the check to the bank. B) The bank must present the check to the checkwriter's bank. C) The funds must be transferred from the checkwriter's bank to the recipient's bank. D) The funds must be transferred from the recipient's bank to the checkwriter's bank.
D
Which of the following statements about ACH transactions is FALSE? A) They reduce the likelihood of missed payments. B) They reduce transactions costs associated with check processing. C) They reduce the costs that lenders incur in notifying customers of missed payments. D) They typically involve digital cash.
D