The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind
A. the double coincidence of wants.
B. a barter economy.
C. the circular flow of income.
D. a pure command economy.
Answer: C
You might also like to view...
________ are financial securities that represent partial ownership of a firm
A) Certificates of deposit B) Stocks C) Treasury bills D) Bonds
The International Monetary Fund was created
A) in 1945 by the Bretton Woods Agreement. B) to collect money from member countries that were running balance of payments deficits. C) in 1971 when President Richard Nixon signed the Bretton Woods Agreement. D) in the aftermath of World War II to help nations move off of the gold standard.
An example of a nontradable good is:
A. a lead-painted toy from China. B. a stack of firewood from Montreal, Canada. C. a dish of handmade pasta in Lucca, Italy. D. All of these would be considered a nontradable good.
Identify the four functions of money and give examples of each in your own words.
What will be an ideal response?