Give an example of how money functions as a unit of account
What will be an ideal response?
Money functions as a unit of account when it is used to in a price. For instance, a price of $60 dollars for a purse shows how the price of the purse is being measured in units of money.
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In the United States, the debt burden tends to rise during ________ and fall during ________
A) wartime, but only if the war is of short duration; peacetime B) peacetime; wartime, but only if the war lasts several years. C) peacetime; wartime D) wartime; peacetime
Examples of thrift institutions include
A) savings deposits and checking deposits. B) commercial banks, savings and loan associations, and insurance companies. C) savings and loan associations, savings banks, and credit unions. D) money market mutual funds, commercial banks, and credit unions.
A Herfindahl index of 5,000 would indicate:
a. a monopoly. b. a duopoly (two firms) with equal shares. c. an oligopoly with three firms. d. a monopolistically competitive industry. e. a perfectly competitive market.
Suppose $X is the present value of $Y to be received next year. If you have $X and let it earn interest at r percent annually, how much money do you expect to have after one year?
a. $Y b. $Y/(1 + r) c. $Y(1 + r) d. $X/(1 + r) e. $X/r