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Chapter 32: AP Macroeconomics Study Guide with Complete Solutions

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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...

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  • October 15, 2024
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  • Exam (elaborations)
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  • AP Macroeconomics
  • AP Macroeconomics
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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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