Test Bank For Financial Institutions Instruments And Markets 9th Edition By Christopher Viney

Chapter 01 Testbank

1. The exchange of goods and services is made more efficient by:
2. A. barters.
3. B. money.
4. C. governments.
5. D. some combination of government transfer and barter.

2. The term ‘medium of exchange’ for money refers to its use as:
3. A. coinage.
4. B. currency.
5. C. something that is widely accepted as payment for goods and services.
6. D. any standard of value that prices can be expressed in.

3. The role of money as a store of value refers to:
4. A. the value of money falling only when the money supply falls.
5. B. the value of money falling only when the money supply increases.
6. C. the fact that money allows worth to be stored readily.
7. D. the fact that money never loses its value compared with other assets.

4. Money increases economic growth by assisting transfers from:
5. A. consumers to investors.
6. B. savers to borrowers.
7. C. businesses to consumers.
8. D. borrowers to investors.

5. Financial markets have developed to facilitate the exchange of money between savers and borrowers. Which of the following is NOT a function of money?
6. A. A store of value
7. B. A medium of exchange for settling economic transactions
8. C. A claim to future cash flows
9. D. Short-term protection against inflation