Exam 3: What Is Money

The currency component includes paper money and coins held in ________.

Explain the evolution of the payments system. Is the system headed towards a cashless society?

Can packs of cigarettes be used as commodity money?

When compared to exchange systems that rely on money, disadvantages of the barter system include ________.

The payments system is ________.

Of money's three functions, the one that distinguishes money from other assets is its function as a ________.

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

Economists say that money is a store of value. since there are other assets that are a more desirable store of money, why do people hold money at all?

Which of the following statements best explains how the use of money in an economy increases economic efficiency?

Compared to an economy that uses a medium of exchange, in a barter economy ________.

E-cash is used for payments ________.

Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.

During hyperinflations, ________.

As a store of value, money ________.

When economists say that money promotes ________, they mean that money encourages specialization and the division of labour.

The components of the M1+ monetary aggregate are chequable deposits plus ________.

Dennis notices that jackets are on sale for $99. In this case money is functioning as a ________.

Money is ________.

Introduction of cheques into the payments system reduced the costs of exchanging goods and services. Another advantage of cheques is that ________.

A problem with barter exchange when there are many goods is that in a barter system ________.