Solved by verified expert :29)
When economists refer to the role of money
as a store of value, they mean that
A)
money never loses its value, unlike other
assets.
B)
money allows value to be stored easily.
C)
the value of money falls only when the
quantity of money in circulation falls.
D)
the value of money falls only when the
quantity of money in circulation rises.
30)
An asset is
A)
the same thing as a liability.
B)
a thing of value that can be owned.
C)
money, as opposed to stock or bonds.
D)
anything that never declines in value.
31)
The attribute that distinguishes money
from other assets is that only money
A)
retains its value during times of
inflation.
B)
is counted in determining the size of an
individual’s wealth.
C)
serves as a medium of exchange.
D)
may be used as collateral for a bank loan.
32)
Wealth is
A)
the sum of the value of assets.
B)
equal to income.
C)
a flow variable.
D)
the sum of the value of assets minus value
of liabilities.
33)
The difference between money and income is
that whereas income is an individual’s
A)
flow of earnings over a period of time,
money is an individual’s stock of currency and currency substitutes.
B)
stock of all assets, money is an
individual’s stock of currency and currency substitutes.
C)
flow of earnings over a period of time,
money is an individual’s stock of all assets.
D)
stock of currency and currency
substitutes, money is an individual’s stock of all assets.
34)
Which of the following is NOT a stock?
A)
Currency
B)
Checking account balances
C)
Income
D)
Wealth
35)
In comparing money to shares of General
Motors stock, we can say that
A)
money is a store of value, but shares of
General Motors stock are not.
B)
shares of General Motors stock are a store
of value, but money is not.
C)
both money and shares of General Motors
stock are stores of value.
D)
neither money nor shares of General Motors
stock are stores of value.
