True or false about money

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Money is the commonly accepted medium of exchange.

2. Statement is true

   Yes

   Statement

   Barter needs a double coincidence of wants.

3. Statement is true

   No

   Statement

   Demand deposits are legal tender.

4. Statement is true

   Yes

   Statement

   Every country usually has one central bank.

5. Statement is true

   No

   Statement

   M3 and M4 are called narrow money.

Instructions

Decide whether each statement is true or false.

Explanation