1. Money is defined as

• a byproduct of a barter economy. a person's net worth.
• anything that people generally
• accept in exchange for goods and services.
• any financial instrument that is backed by gold.

2. The degree to which an asset can be acquired or disposed of without much loss of nominal value or transaction costs is known as

• fiducia.
• credit.
• fiat money.
• liquidity.

3. The opportunity cost of holding money is measured by

• a dollar.
• the interest yield that could have been earned by holding some other asset.
• the liquidity of interest-bearing assets.
• the price of government bonds.

4. The reason that people are willing to accept money with no intrinsic value is that

• paper currency may be exchanged for full-bodied money.
• the money supply is backed by an equal amount of gold and silver.
• the value of the money varies directly with changes in the price level.
• there is a fiduciary monetary system in which currency has both acceptability and predictability of value.

5. The designate M1 measure of money consists of

• credit cards and ATM cards.
• gold and gold coins.
• the most liquid types of money in the U.S. system.
• small time deposits only.