Which of the following is not a function of money?
Unit of account
Medium of exchange
Store of value
Intermediation
A situation marked by rising prices and stagnation in demand is known as
Cost-push inflation
Demand – pull inflation
Stagflation
Wage – push inflation
The essential characteristic required before any substance can function as money is that
It be issued by the government
It be backed by a precious metal
The supply of it be unlimited and uncontrolled
People accept it as money
M3 and M4 measure of money supply is
Narrow
Broad
Liquid
Least liquid
A coincidence of wants happens exists when
Two people want the same thing at the same time
One person wants to but two different things at the same time
The individual who has what I want, also wants what I have
All the above
Legal tender is the circulating medium under
The gold standard
Bimetallism
Commodity standards
Fiat-money standards
A double coincidence of wants is
A condition easily satisfied in a direct exchange economy
A condition not easily satisfied in barter
A desirable property of money
A function of money
“Bad money drives good money out of circulation.” This is a statement of
Monetary policy rule.
Okun’s law.
Gresham’s law.
The paradox of thrift
Which of the following is not true of inflation?
It reduces purchasing power of money.
It favours lenders and penalizes borrowers
It redistributes income in favour of variable income earners.
It decreases social welfare.
Currency with the public is known as
M1
M2
M3
M4
