ECON 104 Final Exam Review

What was your favorite movie when you were a kid?

Describe your thoughts on the Econ 104 final in one word.

Any transaction that involves exchanging one good for another without using money is considered a

• Liquidity Transaction

• Barter Transaction

• Deferred Payment

• Black Market Exchange

Which of the following factors causes the barter system to be inefficient?

• Its cost of transaction is too low.

• The cost associated with information search is too low.

• It requires a double coincidence of wants.

• It requires high liquidity.

When you pay $8 for a salad at lunch, you are using money as a(n)

• Store of value

• Investment good

• Medium of exchange

• Unit of account

If grain is used as money in a country, what is this an example of?

• Representative Money

• Fiat Money

• Commodity Money

• Yummy Money

Which of the following is an example of fiat money?

• Tesla stock

• An ounce of gold

• A dollar bill

• Oil

Andy transfers $3,000 from a savings account to his checking account. This transaction will

• Decrease M1 and M2

• Increase M1 and M2

• Decrease M2 but increase M1

• Cause no change in M1 or M2

Sandra transfers $1,000 from her checking account to a money market account. What effect does this have on M1 and M2?

• M1 decreases and M2 increases

• M1 decreases and M2 stays the same

• M1 and M2 are not changed

• M1 increases and M2 stays the same. 

Bank Reserves are…

• Included in M1 but not M2

• Included in the Monetary Base

• Included in the Monetary Base and M1

• Called “traveler’s checks”