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Name: __________________________ Date: _____________
1. Economists use the termmoney to refer to:
A) income.
B) profits.
C) assets used for transactions.
D) earnings from labor.
2. Macroeconomists call assets used to make transactions:
A) real income.
B) nominal income.
C) money.
D) consumption.
3. All of the following are considered major functions of moneyexcept as a:
A) medium of exchange.
B) way to display wealth.
C) unit of account.
D) store of value.
4. People use money as a store of value when they:
A) hold money to transfer purchasing power into the future.
B) use money as a measure of economic transactions.
C) use money to buy goods and services.
D) hold money to gain power and esteem.
5. People use money as a unit of account when they:
A) hold money to transfer purchasing power into the future.
B) use money as a measure of economic transactions.
C) use money to buy goods and services.
D) hold money to gain power and esteem.
6. People use money as a medium of exchange when they:
A) hold money to transfer purchasing power into the future.
B) use money as a measure of economic transactions.
C) use money to buy goods and services.
D) hold money to gain power and esteem.
7. When a pizza maker lists the price of a pizza as $10, this is an example of using money
as a:
A) store of value.
B) unit of account.
C) medium of exchange.
D) flow of value.
8. Moneys liquidity refers to the ease with which:
A) coins can be melted down.
B) illegally obtained money can be laundered.
C) loans can be floated.
D) money can be converted into goods and services.
9.
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