Question

Question 2

Which of the following is an example of commodity money?

That's not right.

a gold bar

cigarettes used in POW camps

a silver coin

all of the above

Question 5

The M2 definition of money supply includes:

That's not right.

currency

checking accounts and travelers checks

savings deposits, money market funds, and certificates of deposit

all of the above

Question 12

Which of the following is not an asset?

That's not right.

A debt or something you owe.

Something of value that is owned and can be used productively.

Reserves of money held in the form of cash in the bank vaults.

A holding of government treasuries by a bank

Answer 1

(Question 2) Option (4)

In POW camps, cigarettes were used as barter commodity in exchange of other goods like food, clothes etc. Gold and silver have been used as a medium of exchange and store of value in all economies. Therefore all these are commodity money.

(Question 5) Option (4)

M2 = Currency + Chekable deposits _ Travelers checks + Savings deposits, money market funds, and certificates of deposit

(Question 12) Option (1)

A debt owed is a liability that has to be repaid, and not an asset.