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© 2014 Pearson Canada Inc.#
Because it is a unit of account, money ____.
A) increases transaction costs
B) reduces the number of prices that need to be calculated
C) does not earn interest
D) discourages specialization
Answer: B
Diff: 1 Type: MC Page Ref: 49
Skill: Recall
Objective List: 3.2 Distinguish among the three primary functions of money
Dennis notices that jackets are on sale for $99. In this case money is functioning as a
____.
A) medium of exchange
B) unit of account
C) store of value
D) payments-system ruler
Answer: B
Diff: 2 Type: MC Page Ref: 49
Skill: Applied
Objective List: 3.2 Distinguish among the three primary functions of money
As a store of value, money ____.
A) does not earn interest
B) cannot be a durable asset
C) must be currency
D) is a way of saving for future purchases
Answer: D
Diff: 1 Type: MC Page Ref: 49
Skill: Recall
Objective List: 3.2 Distinguish among the three primary functions of money
Patrick places his pocket change into his savings bank on his desk each evening. By his
actions, Patrick indicates that he believes that money is a ____.
A) medium of exchange
B) unit of account
C) store of value
D) unit of specialization
Answer: C
Diff: 2 Type: MC Page Ref: 49
Skill: Applied
Objective List: 3.2 Distinguish among the three primary functions of money