Economists Who Stress the Store of Value Function of Money

question 107

Multiple Choice

Economists who stress the store of value function of money generally

• A) argue that M1 is the best measure of the money supply.
• B) prefer the M2 measure of the money supply to the M1 measure.
• C) argue that M1 is too broad a definition of the money supply.
• D) prefer the M1 measure of the money supply to the M2 measure.

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Definitions:

Warehouse Receipt

A document that provides proof of ownership of commodities (e.g., goods or merchandise) stored in a warehouse.

Bill of Lading

A document issued by a carrier to acknowledge receipt of cargo for shipment.

Nonnegotiable

Refers to instruments or documents that cannot be transferred or endorsed to another party as payment or settlement.

Finder

An individual who locates something that was lost and may have certain legal rights or obligations regarding its care or return.