True or false: money and credit

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Money removes the need for a double coincidence of wants.

2. Statement is true

   Yes

   Statement

   Money acts as a medium of exchange.

3. Statement is true

   Yes

   Statement

   Barter needs both people to want what the other has.

4. Statement is true

   No

   Statement

   Money is accepted only if it is made of gold or silver.

Instructions

Decide whether each statement about money is true or false.

Explanation