One of the functions of money is to serve as a:
A. completely fixed unit of measure.
B. medium of exchange.
C. sole way to make payments.
D. valuation tool.
Answer: B
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(I) The U.S. trade deficit is a financial obligation of the federal government, and if it is not paid off, foreigners will be reluctant to loan money to the U.S. government. (II) When a nation runs a current account deficit due to a merchandise trade deficit, it must also be true that the nation has a surplus on its capital account due to an inflow of foreign capital
a. I is true; II is false. b. I is false; II is true. c. Both I and II are true. d. Both I and II are false.
Kale just ate a whole bag of cashews. This demonstrates that the bag of cashews is ______.
a. a public good b. rival in consumption c. asymmetric in consumption d. a club good
When money is used to set the value of goods such as cars, VCRs and TVs, money serves as a
a. Store of Value. b. Medium of Exchange. c. Standard of deferred payment. d. Unit of account. e. None of the above.
The sale of either stocks or bonds to raise money is known as equity finance
a. True b. False Indicate whether the statement is true or false