Money's use in non-barter transactions relates to its role as a
A) store of value.
B) medium of exchange.
C) unit of accounting.
D) standard of deferred payment.
B
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Refer to the above figure. Other things being equal, if price is at P2, then we would expect
A) price to decline until an equilibrium is achieved at P0. B) consumers to reduce their offering price for the good. C) an excess quantity demanded to occur. D) consumers to bid against each other for goods and force the price still higher.
A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money. b. restricting international exchange of goods and services. c. ensuring the convertibility of paper money into gold. d. maintaining a fixed stock of foreign currencies. e. ensuring balance of payment surplus.
A production possibilities curve always slopes downward to the right because resources
a. are not scarce. b. have no opportunity cost. c. are freely available. d. are limited. e. are not related to outputs.
A currency bailout
A. Is considered to be a dangerous move by the International Monetary Fund. B. Is considered to be a dangerous move by the central banks of the strongest economies worldwide. C. Occurs when money is borrowed from an economy to increase the value of its currency. D. Can help avoid a situation in which a weakness in one currency undermines other currencies.