While Money Is an Asset Not All Assets Are Money

question 71

Multiple Choice

While money is an asset not all assets are money because:

• A) only money stores value.
• B) money works as a means of payment.
• C) only money is a good asset to hold during times of inflation.
• D) money must be legal tender.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive, usually represented graphically as the area above the supply curve and below the market price.

Consumer Surplus

The differential between the amount envisioned by consumers to pay for a good or service and the actual amount paid.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.

Consumer Surplus

The distinction between the ideal payment by consumers for a product or service and the financial outlay they make.