Test Bank For Financial Institutions Instruments And Markets 9th Edition By Christopher Viney
Chapter 01 Testbank
- The exchange of goods and services is made more efficient by:
- A. barters.
- B. money.
- C. governments.
- D. some combination of government transfer and barter.
- The term ‘medium of exchange’ for money refers to its use as:
- A. coinage.
- B. currency.
- C. something that is widely accepted as payment for goods and services.
- D. any standard of value that prices can be expressed in.
- The role of money as a store of value refers to:
- A. the value of money falling only when the money supply falls.
- B. the value of money falling only when the money supply increases.
- C. the fact that money allows worth to be stored readily.
- D. the fact that money never loses its value compared with other assets.
- Money increases economic growth by assisting transfers from:
- A. consumers to investors.
- B. savers to borrowers.
- C. businesses to consumers.
- D. borrowers to investors.
- Financial markets have developed to facilitate the exchange of money between savers and borrowers. Which of the following is NOT a function of money?
- A. A store of value
- B. A medium of exchange for settling economic transactions
- C. A claim to future cash flows
- D. Short-term protection against inflation