Question

1) The primary form of money in the modern world is:

A.Paper currency.

B.The deposit liabilities of banks.

C.Household and business liabilities.

D.The debt issued by the Federal government.

E.Coins.

2) Money is defined by economists as:

A. Anything that performs the functions of money.

B.   Currency and coin.

C.   All stores of value.

D.   Legal tender.

E.   Any liquid asset.

3)The advantage of money as a store of value is that:

A.It provides the convenience of being already in the form that it can be used as a medium of exchange.

B.Its value is guaranteed by the government.

C.Its value does not diminish as inflation accelerates.

D.It is the only asset that never loses its value.

E.It provides investors with a high return.

*PLEASE ANSWER ALL THIS WILL HELP ME STUDY FOR FINALS*

Answer 1

Question 1 option A is correct. Paper currency or currency bill are the most widely used form of money followed by coins.

Question 2 option A is correct. Money can be anything that can perform the function of money which include store of value medium of exchange and unit of account.

Question 3 the correct choice is option D. Money can be stored for future point of time and its value will not decline. The purchasing power may decline due to inflation but as an asset its value will remain same.