Suppose That Transactions Are Conducted in Euros and Prices Are

question 29

Multiple Choice

Suppose that transactions are conducted in euros and prices are quoted in dollars. In this case the dollar functions primarily as a

• A)store of value.
• B)unit of account and store of value.
• C)medium of exchange.
• D)unit of account.
• E)medium of exchange and store of value.

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Definitions:

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of an individual account holder, offering a secure way of payment.

Certified Check

A check for which the issuing bank guarantees the availability of funds by verifying the account balance and then setting aside the check amount for payment.

Honor

A quality of integrity, fairness, and honesty in one's beliefs and actions.

Certify

To officially recognize, verify, or endorse a particular status, qualification, or fact.