Modern Money

Modern money includes

• commodity money

• fiat money

• bartering

Modern money includes

• paper notes

• coins

• checks

• all of the above

M1 is a measure of money supply that includes

• coins, currency, checks, and checking accounts held at the depository institution

• •forms of time deposit and money market funds

M1 as a measure has a broader definition than M2

• True

• False

M2 as a measure has a broader definition than M2

• True

• False

M2 is a measure of money supply that includes

• forms of time deposit and money market funds

• coins, currency, checks and checking accounts held at depository institution

The institution that regulates banks conducts monetary policy, and provides financial services including economic research is

• Commercial bank

• Investment bank

• Central bank

There should be a central bank in every city.

• True

• False

The location of the central bank in the UAE is in -----------------

• Dubai

• Abu Dhabi

• Sharjah

• Abu Dhabi and Dubia

One of the money features is durability. It means that

• money wears out over a short period

• money gets rusty very quick

• money lasts for a long period, even with frequent use.