Money has value because:
A) it is backed by gold
B) it is costly to print
C) we can use it to buy things
D) the government says that it does
Rank the following assets from least to most liquid:
100 shares of a stock
A diamond ring
A savings account
[Following up clicker question(s): Which asset is the most/least liquid?]
At many amusement parks, you can play games to win tickets; those tickets can then be traded in for various prizes. Which function of money do these tickets serve?
A) The tickets only serve as a store of value as they can be used in the future to play more games.
B) The tickets only represent a medium of exchange because they are exchanged for prizes.
C) The tickets do not serve any function of money since they can only be used to get prizes.
D) The tickets represent all three functions of money since they can be redeemed for a prize, the prizes require a certain amount of tickets, and the tickets can be saved until a later date.
[Discussion starter] True or false: Falling interest rates always have a negative impact on consumers.
Susie Saver has $100 in a savings account earning 5 percent interest per year. Assuming she makes no withdrawals, how much does Susie have in the account after five years?
C) An amount between $105 and $125
D) More than $125
E) It is impossible to say without more information