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昆经济学题库chapter21
Chapter 21
The Monetary System
MULTIPLE CHOICE
1. Money
a. is more efficient than barter.
b. makes trades easier.
c. allows greater specialization.
d. All of the above are correct.
ANSWER: d. All of the above are correct.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
2. Paper money
a. has a high intrinsic value.
b. is used in a barter economy.
c. is valuable because it is generally accepted in trade.
d. is valuable only because of the legal tender requirement.
ANSWER: c. is valuable because it is generally accepted in trade.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
3. Barter
a. requires a double-coincidence of wants.
b. is less efficient than money.
c. is the trading of goods for goods.
d. All of the above are correct.
ANSWER: d. All of the above are correct.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
4. When Arnold use dollars to record his income and expenses, he is using money as a
a. unit of account.
b. means of payment.
c. store of value.
d. medium of exchange.
ANSWER: a. unit of account.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
5. Which of the following is a store of value?
a. currency
b. U.S. government bonds
c. fine art
d. All of the above are correct.
ANSWER: d. All of the above are correct.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
6. Which of the following best illustrates the unit of account function of money?
a. You list prices for candy sold on your Web site, , in dollars.
b. You pay for your WNBA tickets with dollars.
c. You keep $10 in your backpack for emergencies.
d. None of the above is correct.
ANSWER: a. You list prices for candy sold on your Web site, , in dollars.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
7. Mia puts money into a piggy bank so she can spend it later. What function of money does this illustrate?
a. store of value
b. medium of exchange
c. unit of account
d. None of the above is correct.
ANSWER: a. store of value
TYPE: M DIFFICULTY: 1 SECTION: 16.1
8. Which of the following best illustrates the medium of exchange function of money?
a. You
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