Money ______________________.

loses its value as it becomes older
requires a double coincidence of wants
is any commodity that is generally acceptable as a means of payment
is always composed of coins and paper

If an economy has no money, then all transactions must be conducted through the use of ______.

cigarettes or wampum
debit cards
barter
credit cards

Currency in the United Kingdom __________________.

is less efficient than barter
is known as M4
is composed of the notes and coins that we use today
includes cigarettes

A building society is a financial intermediary that _______.

is not allowed to demutualize
is required to have deposits at the Bank of England
traditionally obtained its funds from savings deposits
requires a minimum deposit of £250

__________ is the broadest measure of money in the United Kingdom.

M5
M2
M1
M4

The main measure of money in the eurozone economies is _______.

M4
M1
M15
M3

Liquidity _____________________.

is how quickly an asset loses its worth
increases when a country owns gold
increases when a consumer has more credit cards
is the property of being instantly convertible into money

A financial intermediary is a firm that takes deposits from _______ and makes loans to _______.

firms; households
firms; other firms
households; firms
households and firms; other households and firms

The balance sheet of a bank can be described by the equation:

Assets = Liabilities + Net worth
Net worth + Assets + Liabilities = 1
Liabilities + Assets = Net worth
Net worth + Assets = Liabilities

Reserves are ______________________.

cash in a bank's vault plus its deposits at the Bank of England
cash in a bank's vault plus the cash carried by its customers
cash in a bank's vault plus its gold at the Bank of England
gold in a bank's vault plus its gold at the Bank of England