Which of the Following Is the Best Definition of Money

question 17

Multiple Choice

Which of the following is the best definition of money?

• A)Anything generally accepted in exchange for goods and services
• B)Anything that is a liability of the federal government
• C)Anything that is a liability of a commercial bank
• D)Anything that depositors can access on demand by simply writing checks
• E)Anything that is an asset of a commercial bank

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Definitions:

Total Revenue

The total amount of money received by a firm from the sale of its goods or services, calculated as price times quantity sold.

Total Variable Cost

The total of all costs that vary with the level of production, such as materials and labor costs.

Total Fixed Cost

The sum of all costs that do not change with the level of production or output in the short term, such as rent or salaries.

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit, leading to price taking behavior.