1. What determines the acceptability of dollar bills as a medium of exchange?

A. our society's willingness to use green paper notes issued by the Federal Reserve as money

B. the willingness of the Federal Reserve to redeem dollar bills for gold

C. the willingness of the U.S. Treasury to redeem dollar bills for gold

D. the public's fear that failing to accept dollar bills will trigger a hyperinflation

2. 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.

3. When economists refer to the role of money as a standard of deferred payment, they mean that

A. payments by checks are usually deferred until the checks clear the bank.

B. money earns interest while loan payments are deferred.

C. money provides a standard for payments that will occur in the future.

D. money today is worth less than money tomorrow.