Circle the letter that corresponds to the best answer. Each of the following except _____ is a job of the money apply. a) medium of exchange b) some of value c) standard of value d) receipt for gold Which is the most important job of money? a) medium of exchange b) some of value c) standard of value d) receipt for gold The basic alternative to money in the United States would be _____ a) gold b) barter c) stealing d) the underground economy Barter involves _____ a) money b) specialization c) a double coincidence of wants d) demand deposits Which of the following is not part of our money supply? a) dollar bills b) demand deposits c) traveler’s checks d) gold Which statement is true? a) M1 is larger than M2. b) M1 is equal to M2. c) M2 is larger than M1. d) M1 is sometimes larger than M2 and sometimes smaller than M2. Which statement is true? a) Checks are not money b) A small part of our money supply is silver certificates. c) Most of our money supply is in the form of currency. d) None of the above. The U.S, dollar is based on _____ currency. a) British b) French c) Dutch d) Spanish Which is not in M2? a) currency b) demand c) small-denomination time deposits d) large-denomination time deposits Which statement is true? a) Credit cards are a form of money. b) Debit cards are a form of money c) M2 is about four times the size of M1. d) M1 is about four times the size of M2. When you buy something with a credit card _____ and when you buy something with a debit card _____ a) you owe money: you owe money b) you owe money: money is taken out of your checking account c) money is taken out of your checking account: money is taken out of your checking account d) money is taken out of your checking account owe money In March 2013 M1 was more than $ _____ billion. a) 1,200 b) 2,400 c) 1,800 d) 3,600
Ans 1 d) Receipt of Gold
Ans 2 a) Medium of Exchange
Ans 3 b) Barter
Ans 4 c) A double coincidence of wants
Receipt of gold is not considered to be a job of money supply and the most important job of money is to be a medium of exchange.