Economics of Money, Banking, and Financial Markets, 12e (Mishkin)
Chapter 3  What Is Money?
3.1  Meaning of Money
1) To an economist, ________ is anything that is generally accepted in payment for goods or services or in the repayment of debt.
A) wealth
B) income
C) money
D) credit
Answer:  C
Ques Status:  Revised
AACSB:  Application of Knowledge
2) Money is
A) anything that is generally accepted in payment for goods or services or in the repayment of debt.
B) a flow of earnings per unit of time.
C) the total collection of pieces of property that are a store of value.
D) always based on a precious metal like gold or silver.
Answer:  A
Ques Status:  Revised
AACSB:  Application of Knowledge
3) Currency includes
A) paper money and coins.
B) paper money, coins, and checks.
C) paper money and checks.
D) paper money, coins, checks, and savings deposits.
Answer:  A
Ques Status:  Previous Edition
AACSB:  Analytical Thinking
4) Even economists have no single, precise definition of money because
A) money supply statistics are a state secret.
B) the Federal Reserve does not employ or report different measures of the money supply.
C) the "moneyness" or liquidity of an asset is a matter of degree.
D) economists find disagreement interesting and refuse to agree for ideological reasons. Answer:  C
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
5) The total collection of pieces of property that serve to store value is a person's
A) wealth.
B) income.
C) money.
D) credit.
Answer:  A
Ques Status:  Previous Edition
AACSB:  Application of Knowledge
6) A person's house is part of her
A) money.
B) income.
C) liabilities.
D) wealth.
Answer:  D
Ques Status:  Previous Edition
AACSB:  Analytical Thinking
7) ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value.
A) Money; income
B) Wealth; income
C) Income; money
D) Money; wealth
Answer:  D
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
8) ________ is a flow of earnings per unit of time.
time is money
A) Income
B) Money
C) Wealth皮卡丘怎么画才可爱
D) Currency
Answer:  A
Ques Status:  Previous Edition
AACSB:  Application of Knowledge
快播小方9) An individual's annual salary is her
A) money.
B) income.
C) wealth.
D) liabilities.
Answer:  B
Ques Status:  Previous Edition
AACSB:  Analytical Thinking
10) When we say that money is a stock variable, we mean that
A) the quantity of money is measured at a given point in time.
B) we must attach a time period to the measure.
C) it is sold in the equity market.
D) money never loses purchasing power.
Answer:  A
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
11) The difference between money and income is that
A) money is a flow and income is a stock.
B) money is a stock and income is a flow.
C) there is no difference—money and income are both stocks.
D) there is no difference—money and income are both flows.
Answer:  B
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
12) Which of the following is a TRUE statement?
A) Money and income are flow variables.
B) Money is a flow variable.
C) Income is a flow variable.
D) Money and income are stock variables.
Answer:  C
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
13) Which of the following statements uses the economists' definition of money?
A) I plan to earn a lot of money over the summer.
B) Betsy is rich—she has a lot of money.
C) I hope that I have enough money to buy my lunch today.
D) The job with New Company gave me the opportunity to earn more money. Answer:  C
Ques Status:  Previous Edition
AACSB:  Analytical Thinking
14) When we say that income is a flow variable, we mean that
A) we must attach a time period to the measure for it to make sense.
B) it is measured at a given point in time.
C) it moves through our hands quickly.
D) the value is constantly changing.
Answer:  A
Ques Status:  New
AACSB:  Reflective Thinking
汽车市场部3.2  Functions of Money
1) Of money's three functions, the one that distinguishes money from other assets is its function as a
A) store of value.
B) unit of account.
C) standard of deferred payment.
D) medium of exchange.
Answer:  D
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
2) If peanuts serve as a medium of exchange, a unit of account, and a store of value, then peanuts are
A) bank deposits.
B) reserves.
C) money.
D) loanable funds.
Answer:  C
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
3) ________ are the time and resources spent trying to exchange goods and services.
A) Bargaining costs
B) Transaction costs
C) Contracting costs
D) Barter costs
Answer:  B
Ques Status:  Previous Edition
AACSB:  Application of Knowledge
4) Compared to an economy that uses a medium of exchange, in a barter economy
A) transaction costs are higher.
B) transaction costs are lower.
C) liquidity costs are higher.
对不起我还爱你D) liquidity costs are lower.
Answer:  A
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
5) When compared to exchange systems that rely on money, disadvantages of the barter system include
A) the requirement of a double coincidence of wants.
B) lowering the cost of exchanging goods over time.
C) lowering the cost of exchange to those who would specialize.
D) encouraging specialization and the division of labor.
Answer:  A
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
6) The conversion of a barter economy to one that uses money
A) increases efficiency by reducing the need to exchange goods and services.
战国策魏策B) increases efficiency by reducing the need to specialize.
C) increases efficiency by reducing transactions costs.
D) does not increase economic efficiency.
Answer:  C
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
7) Which of the following statements best explains how the use of money in an economy increases economic efficiency?
A) Money increases economic efficiency because it is costless to produce.
B) Money increases economic efficiency because it discourages specialization.
C) Money increases economic efficiency because it decreases transactions costs.
D) Money cannot have an effect on economic efficiency.
Answer:  C
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
8) When economists say that money promotes ________, they mean that money encourages specialization and the division of labor.
A) bargaining
B) contracting
C) efficiency
D) greed
Answer:  C
Ques Status:  Previous Edition
AACSB:  Reflective Thinking
9) Money ________ transaction costs, allowing people to specialize in what they do best.
A) reduces
B) increases
C) enhances
D) eliminates
Answer:  A
Ques Status:  Previous Edition
AACSB:  Application of Knowledge