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Moiseeva_F

Comprehension:

  1. What are three basic functions of money?

  2. Why is barter a clumsy way of doing business?

  3. In what case can money be more than a temporary store of value?

  4. Why do people continue to hold money even in the period of rapid inflation?

  5. What is ‘deferred payment’?

True-false questions:

  1. Anything can act as money if it is generally accepted by people as money.



  1. In all advanced economies the greater part of money supply consists of notes and coins.



  1. Barter is an efficient way of doing business.



  1. When the price level is stable, money can be more than a temporary store of value.



  1. Inflation erodes the usefulness of money.