Tackle the Test: Multiple-Choice Questions

1. Question

   When you use money to purchase the $6 lunch special, money is serving which role(s)?

   
   

   
   

   1. medium of exchange

      
      
   
   

   2. store of value

      
      
   
   

   3. unit of account
      

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and III only

   E.

   I, II, and III

   When you use money to purchase the $6 lunch special, money is serving which role(s)?

2. Question

   When you decide you want “$10 worth” of a product, money is serving which role(s)?

   
   

   
   

   1. medium of exchange

      
      
   
   

   2. store of value

      
      
   
   

   3. unit of account
      

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   When you decide you want “$10 worth” of a product, money is serving which role(s)?

3. Question

   In the United States, the dollar is

   A.

   backed by silver.

   B.

   backed by gold and silver.

   C.

   commodity-backed money.

   D.

   commodity money.

   E.

   fiat money.

   In the United States, the dollar is

4. Question

   Which of the following is the most liquid monetary aggregate?

   A.

   M1

   B.

   M2

   C.

   M3

   D.

   near-moneys

   E.

   dollar bills

   Which of the following is the most liquid monetary aggregate?

5. Question

   Which of the following is the best example of using money as a store of value?

   A.

   A customer pays in advance for $10 worth of gasoline at a gas station.

   B.

   A babysitter puts her earnings in a dresser drawer while she saves to buy a bicycle.

   C.

   Travelers buy meals on board an airline flight.

   D.

   Foreign visitors to the United States convert their currency to dollars at the airport.

   E.

   You use $1 bills to purchase soda from a vending machine.

   Which of the following is the best example of using money as a store of value?