Survey Of Economics
10th Edition
ISBN: 9781337111522
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 18, Problem 2SQP
(a)
To determine
The potential of the item to be used as money.
(b)
To determine
The potential of the item to be used as money.
(c)
To determine
The potential of the item to be used as money.
(d)
To determine
The potential of the item to be used as money.
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Could each of the following items potentially serve as money? Consider each as a medium of exchange, a unit of account, or a store of value.
A. Visa credit card
B. Federal Reserve note
C. Debit card
D. Picasso painting
Explain why credit cards are not considered as money.
Suppose you’re at the mall shopping for a pair of shoes and run into NBA player LeBron James. You help him find a perfect gift to give his teammate, Alex Caruso. As thanks for your help, he signed the jersey off his back and gave it to you. Even though his jersey is a valuable asset, why would it not serve as a very good form of money in your attempt to buy shoes? Use the three primary functions of money in your explanation.
Chapter 18 Solutions
Survey Of Economics
Knowledge Booster
Similar questions
- Describe a national bank note. Explain what they were, how they were created, and why they served as form of money.arrow_forwardGive typing answer with explanation and conclusion Could each of the following items potentially serve as money? Consider each as a medium of exchange, a unit of account, or a store of value. a. Visa credit card, b. Federal Reserve note, c. Debit card, d. Picasso paintingarrow_forwardExplain each of the following types of deposit accounts: a.demand deposit b.certificate of deposit c.money market demand accountarrow_forward
- 1. find and cite two recent articles in a magazine or newspaper or on a website about bitcoin and in your own words post two thoughts about what you learned and understood about bitcoin from those articles 2. Do you think bitcoin is money? If yes, why? If not, why not? Think about what makes anything money 3. respond to at least one of your colleagues' posts in a thoughtful, productive way 4. refer to the rubric posted below to understand how the posts are gradedarrow_forwardEveryone in Bananatown loves bananas! In fact, sometimes they are willing to take them as a form of payment for goods and services instead of dollars. Bill, a tourist, sees an opportunity to make some money due to 8 bananas being worth $2. He buys all of the bananas in Bananatown and goes home. He stores them in the trunk of his car for 6 months. Bill then goes back to Bananatown, knowing that the people there will be excited to purchase bananas from him. He opens his trunk and realizes that this plan was not well thought out, as all the bananas are rotten. How are bananas used as a form of money in Bananatown?arrow_forwardWrite a post that explains why money is not the universal measure of all value.arrow_forward
- Bitcoin is not a suitable form of money because its price is highly variable. Which one of the functions of money does this violate? A. Store of value B. Medium of exchange C. Unit of accountarrow_forwardYou can walk into any department store and compare prices on jeans. Which of the following functions of money allow for this? A) Unit of Account B) Store of Value C) Medium of Exchange D) Durability of Currencyarrow_forwardThe task I am struggling with: Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. The reserve ratio is 10%. a) how dies the deposit initially change the T-account of the local bank? How does it change the money supply? b) If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? c) if every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, by how much could the total money supply in the economy expand in response to Tracy´s initial cash deposit of $500? Thank you very much for your help.arrow_forward
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