Chapter 12

Question 1

Money functions as:

Answer 1

a store of purchasing power, a measure of value, and a means of exchange

Question 2

If you are estimating your total expenses for school next year, you are using money as:

Answer 2

a measure of value

Question 3

If you place a part of your summer earnings as cash in a safety deposit box, you are employing money as:

Answer 3

a store of purchasing power

Question 4

If a person writes a cheque on a Saskatoon bank to purchase a new car, he or she is employing money as:

Answer 4

a means of exchange

Question 5

A $175 price tag on a cashmere sweater in a department store window is an example of money functioning as:

Answer 5

a measure of value

Question 6

Stock market price quotations best exemplify money serving as a(n):

Answer 6

means of exchange

Question 7

Purchasing common stock by writing a cheque best exemplifies money serving as a(n):

Answer 7

means of exchange

Question 8

Demand deposits are classified as money becau

Answer 8

they can be readily used in the making of purchases and payment of debts