A “near money” is an asset that can be
A. indistinguishable from commodity money.
B. spent easily.
C. a close substitute for money.
D. only issued by a bank.
Answer: C
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English mercantilism recognized the law of comparative advantage, thus permitting individuals to specialize in producing those goods and services which they could produce at relatively low opportunity costs and trading those items for those which
they could not. Indicate whether the statement is true or false
Suppose a home owner is selling their home and they are aware that the basement has a severe drainage problem and the potential buyers do not have this information. This is an example of ________.
A) screening B) the principal-agent problem C) self-revelation D) asymmetric information
If taxpayers can enjoy mosquito abatement whether or not they pay for it and, therefore, they tend to understate their true valuation of the spraying, this is an example of
a. private goods b. the median-voter model c. an open-access good d. the free-rider problem e. irrational ignorance
Suppose that the exchange rate between the U.S. dollar and the Mexican peso is 1 peso = $0.11. If the U.S. dollar price per Mexican peso changes to 1 peso =$0.10, the peso is said to have __________ and the dollar to have __________
A) depreciated; appreciated B) appreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated