True or false: money and banking

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Money serves as a medium of exchange.

2. Statement is true

   No

   Statement

   M2 is narrower than M1.

3. Statement is true

   No

   Statement

   You can write a check on a savings deposit.

4. Statement is true

   Yes

   Statement

   Net worth is assets minus liabilities.

5. Statement is true

   Yes

   Statement

   Barter needs a double coincidence of wants.

Instructions

Tap True or False for each statement.

Explanation