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© 2014 Pearson Canada Inc.#3.3 Evolution of the Payments System
The payments system is ____.
A) the method of conducting transactions in the economy
B) used by union officials to set salary caps
C) an illegal method of rewarding contracts
D) used by your employer to determine salary increases
Answer: A
Diff: 1 Type: MC Page Ref: 50
Skill: Recall
Objective List: 3.3 Show understanding of payments system and illustrate how information
technology has paved the way for e-money, e-banking, and e-commerce
As the payments system evolves from barter to a monetary system, ____.
A) commodity money is likely to precede the use of paper currency
B) transaction costs increase
C) the number of prices that need to be calculated increase rather dramatically
D) specialization decreases
Answer: A
Diff: 1 Type: MC Page Ref: 50
Skill: Recall
Objective List: 3.3 Show understanding of payments system and illustrate how information
technology has paved the way for e-money, e-banking, and e-commerce
A disadvantage of ____ is that it can be very heavy and hard to transport from one place
to another.
A) commodity money
B) fiat money
C) electronic money
D) paper money
Answer: A
Diff: 1 Type: MC Page Ref: 50
Skill: Recall
Objective List: 3.3 Show understanding of payments system and illustrate how information
technology has paved the way for e-money, e-banking, and e-commerce
Paper currency that has been declared legal tender but is not convertible into coins or precious
metals is called ____ money.
A) commodity
B) fiat
C) electronic
D) funny
Answer: B
Diff: 1 Type: MC Page Ref: 50 - 51
Skill: Recall
Objective List: 3.3 Show understanding of payments system and illustrate how information
technology has paved the way for e-money, e-banking, and e-commerce