Question

1)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Because money eliminates the "double coincidence of wants" problem, the development of money as a ________ has facilitated the expansion of trade. 1) _______ A) unit of account B) medium of exchange C) store of value D) measure of value 2) When you keep your savings in a safety deposit box, you are using money as a(n) 2) _______ A) unit of account. B) store of value. C) investment good. D) medium of exchange. 3) When the prices of goods and services rise 3) _______ A) the value of money rises. B) the value of money falls. C) exports increase. D) imports decrease. 4) When a car dealer attaches price stickers to his products, he is using money as a 4) _______ A) medium of exchange. B) unit of account. C) unit of transfer. D) store of value. 5) To ensure that ________ will be accepted, the U.S. government implicitly promises the public that it will not print money so fast that it loses its value. 5) _______ A) commodity money B) exchange rates C) barter cash D) paper money 6) M1 is a 6) _______ A) stock variable. B) commodity money. C) near money. D) flow variable. 7) Futura Bank has liabilities of $8 million and net worth of $1,200,000. Futura Bank's assets are 7) _______ A) $1.2 million. B) $6.8 million. C) $8 million. D) $9.2 million. 8) A commercial bank lists deposits as 8) _______ A) excess reserves. B) liabilities. C) retained earnings. D) assets. Refer to the info

Answer 1

1) Solution: medium of exchange
Explanation: As medium of exchange the money is used for purchasing and selling of items and services.
2) Solution: store of value
Explanation: Money plays the role of store of value i.e. to be most liquid asset thus measures how simply assets can be used for buying the items and services.
3) Solution: the value of money falls.
Explanation: inflation reduces the value of money
4) Solution: unit of account
Explanation: As the unit of account money plays the role of a common standard in measuring the relative worth for all the items and services.
5) Solution: paper money
Explanation: U.S. government implicitly promises to public that paper money will not be printed quickly to ensure them it do not lose its value.

As per policy we have to answer first four parts; I have answered more than it