AP Macroeconomics: Money Questions And
Answers
unit of value 10 Characteristics of Money: (1)*
-US DOLLAR
-can be subdivided into other acceptable denominations
medium of exchange 10 Characteristics of Money: (2)*
-currency
-i.e. federal reserve notes = US currency
store of value 10 Charac...
-can be subdivided into other acceptable denominations
medium of exchange 10 Characteristics of Money: (2)*
-currency
-i.e. federal reserve notes = US currency
store of value 10 Characteristics of Money: (3)*
-over time, accumulation of currency leads to accumulation of wealth and purchasing power
-allows for comparative values
-also applies to foreign exchange
easily divisible 10 Characteristics of Money: (4)
-especially of US currency
-nostalgic value of pennies vs. usefulness
, AP Macroeconomics: Money Questions And
Answers
high value to weight ratio 10 Characteristics of Money: (5)
-each note = 1 gram
-Value = Weight x Denomination
hard to counterfeit 10 Characteristics of Money: (6)
-made by Bureau of Printing and Engraving
durable 10 Characteristics of Money: (7)
-"paper money" (75% cotton/25% linen)
portable 10 Characteristics of Money: (8)
scarce 10 Characteristics of Money: (9)
= value (controlled by monetary policy)
accepted 10 Characteristics of Money: (10)
, AP Macroeconomics: Money Questions And
Answers
commodity Types of Money:
-inherent value
representative Types of Money:
-NO inherent value (value by association)
-value comes from what supports it (i.e. specie gold/silver)
fiat Types of Money:
-value because government says so
-"________" = gov't decree; legal tender
-US money; backed by DEBT
demand deposit AKA "checks"
near money assets that can easily be turned into currency without loss of value
-i.e. savings account, certificate of deposit or savings bond
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller UpperClass. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
