Answer the following statement(s) true (T) or false (F)
1. As long as it is generally accepted in exchange for services and goods, anything can be considered money.
2. Money has two main economic functions: to act as a medium of exchange and to act as a store of value.
3. Naya knows that a pound of wild rice costs $3.49 and that a pound of granulated sugar costs $0.89. The fact that she can determine this illustrates money’s function as a means of stored value.
4. Fiat money is money that has been established by custom or tradition.
5. Savings deposits are considered part of the M2 definition of money, but not the M1 definition.
1.TRUE
2.FALSE
3.FALSE
4.FALSE
5.TRUE
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If the Chinese Yuan devalues against the US dollar, then
a. Both the US exporters and Chinese importers would benefit b. The US exporters would benefit while the Chinese importers would be hurt c. The US exporters would be hurt while the Chinese consumers would benefit d. Both the US exporters and Chinese importers would be hurt
As the U.S. price level decreases, expenditures by which of the following will increase?
A. Consumers B. Businesses C. The rest of the world D. All of these will increase their expenditures.
Menu costs will:
A. increase the amount of training of workers. B. make prices inflexible downward. C. increase the legal minimum wage. D. result in price wars between businesses.
How is the architecture within firms usually designed?
What will be an ideal response?