Question

The term ___ is used to define these other types of deposits or assets that act as a store of value and can be converted into a medium of exchange but are not themselves a medium of exchange.

A) Money supply

B) Bad money

C) Good money

D) Near money

Each year, the local government establishes a ___ that represents the property tax rate as a fraction of the assessed value.

A) Provncial sales tax

B) Goods and services tax

C) Mill rate

D) Property tax

Answer 1

For the first option, it is given that the answer can be converted to a medium of exchange but they are not medium of exchange themselves. For the given options, A,B,C are all mediums of exchange except (D) Near money which actually refers to bills of exchange and other instruments which can be converted to liquid assets directly usable as medium of exchange but are not themselves medium of exchange.

For the second option, Mill rate is the answer. It is directly the definition of a Mill Rate.

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