Chapter 32: AP Macroeconomics Study Guide with Complete Solutions
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Course
AP Macroeconomics
Institution
AP Macroeconomics
Chapter 32: AP Macroeconomics Study
Guide with Complete Solutions
Medium of exchange - Answer-any items sellers generally accept and buyers generally use to pay for
a good or service; money; a convenient means of exchanging goods and services without exchanging in
barter
Unit of account - Answ...
Chapter 32: AP Macroeconomics Study
Guide with Complete Solutions
Medium of exchange - Answer✔✔-any items sellers generally accept and buyers generally use to pay for
a good or service; money; a convenient means of exchanging goods and services without exchanging in
barter
Unit of account - Answer✔✔-a standard unit inwhich prices can be stated and the value of goods and
services can be compared; one o the 3 functions of money
Store of value - Answer✔✔-an asset set aside for future use; one of the 3 functions of money
Liquidity - Answer✔✔-the degree to which an asset can be converted quickly into cash with little or no
loss of purchasing power. Money is said to be perfectly liquid whereas other assets have lesser degrees
of liquidity
MI - Answer✔✔-the most narrowly defined money supply, equal to currency in the hands of the public
and the checkable deposits of commercial banks and thrift institutions
Federal reserve notes - Answer✔✔-paper money issued by the fed reserve banks
Token money - Answer✔✔-bills or coins for which the amount printed on the currency bears to
relationship to the value of the paper or metal embodied within it; for currency still circulating, money
for which the face value exceeds the commodity value
Checkable deposits - Answer✔✔-any deposit in a commercial bank or thrift institution against which a
check may be written
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