Money eliminates the need for a coincidence of wants in trading primarily through its role as a

Question 6 1 pts

Money eliminates the need for the double coincidence of wants through its use as a

Group of answer choices

unit of account

store of value

medium of exchange

standard of value

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Question 7 1 pts

In the United States, the basic money supply (M1) is primarily comprised of

Group of answer choices

coins, "paper" currency, checkable deposits, & short-term government debt

coins, "paper" currency & checkable deposits

a commodity

worthless pieces of "paper", thanks to the Federal Reserve System

"near-monies"

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Question 8 1 pts

Keynes' important contribution to the concept of money demand was (hint: see question #10)

Group of answer choices

he really didn't make any important contribution

the development of the various definitions of money (M1, M2, etc.)

an emphasis on the possibility that the public might wish to hold money as a "store of wealth" or an asset

the "transactions demand" for money

that there is an inverse relationship between the value of money and the price level

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Question 9 1 pts

The demand for money function put together in class is formally known as

Group of answer choices

the classical demand for real cash balances

what demand for money function?

the liquidity preference demand for money function

the alcohol preference for money function

the transactions demand for money function

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Question 10 1 pts

The transactions demand (Dt) for money is most closely related to money functioning as a

Group of answer choices

store of value (or wealth)

unit of account

medium of exchange

measure of value

Answer

Answer 1)

'MEDIUM OF EXCHANGE ' option is correct .

DOUBLE COINCIDENCE OF WANTS :

Double coincidence of wants is a major characteristic of barter system of exchange .

It implies that at a point of time , the two individuals are in possession of such goods which they are willing to exchange for the satisfaction of their wants .

But it is not always simple to find a person who wants your good and at the same time, possess that good which you want to buy . That's why in barter system , exchange remain limited .

But with emergence of money as a MEDIUM OF EXCHANGE the problem of double coincidence of wants has vanished .

Money acts as a medium for sale and purchase of goods and services .

Note : All other options are incorrect because money as store , standard and unit can't solve the problem of sale and purchase in barter .

NOTE : As per guidelines , we are required to do single independent question.

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