moneyandbanktestbankchap03.docVIP

The Economics of Money, Banking, and Financial Markets, 9e (Mishkin) Chapter 3 What Is Money? 3.1 Meaning of Money 1) To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt. A) wealth B) income C) money D) credit Answer: C Ques Status: Previous Edition 2) Money is A) anything that is generally accepted in payment for goods and services or in the repayment of debt. B) a flow of earnings per unit of time. C) the total collection of pieces of property that are a store of value. D) always based on a precious metal like gold or silver. Answer: A Ques Status: Previous Edition 3) Currency includes A) paper money and coins. B) paper money, coins, and checks. C) paper money and checks. D) paper money, coins, checks, and savings deposits. Answer: A Ques Status: Previous Edition 4) Even economists have no single, precise definition of money because A) money supply statistics are a state secret. B) the Federal Reserve does not employ or report different measures of the money supply. C) the moneyness or liquidity of an asset is a matter of degree. D) economists find disagreement interesting and refuse to agree for ideological reasons. Answer: C Ques Status: Revised 5) The total collection of pieces of property that serve to store value is a persons A) wealth. B) income. C) money. D) credit. Answer: A Ques Status: New 6) A persons house is part of her A) money. B) income. C) liabilities. D) wealth. Answer: D Ques Status: Previous Edition 7) ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value. A) Money; income B) Wealth; income C) Income; money D) Money; wealth Answer: D Ques Status: Previous Edition 8) ________ is a flow of earnings per unit of time. A) Income B) Money C) Wealth D) Currency Answer: A Ques Status: Previous Edition 9) An individuals annual salary is her A) money. B) income. C) wealth. D