Question

3 multiple choice 10 points money holds its value if you decide to hold on to it and not spend it. medium of exchange store of value currency durability financial liquidity 4 multiple answer 10 points multiple correct answers select all of the following types of currency that are considered \durable\ as a characteristic of money. a quarter a paper check a verbal promise to pay food to exchange/trade for services a dollar bill

Explanation:

Question 3 (Multiple Choice)

To determine the correct answer, we analyze the functions of money:

• "Medium of Exchange" refers to money being used to facilitate transactions (e.g., buying goods).
• "Store of Value" means money can retain its value over time, even if held and not spent immediately.
• "Currency Durability" is not a standard function of money.
• "Financial Liquidity" relates to how easily an asset can be converted to cash, not about holding value.

The statement describes money holding its value when not spent, which matches "Store of Value".

To identify durable currency, we assess each option:

• "A quarter": Coins are made of durable materials (metal) and can last.
• "A paper check": Checks are not durable (paper can be damaged, and they are time - bound).
• "A verbal promise to pay": Not a physical, durable form of currency.
• "Food to exchange/trade for services": Food is perishable and not durable.
• "A dollar bill": Paper currency is designed to be relatively durable (though less than metal coins) and can hold up over time.

So the durable currencies are a quarter and a dollar bill.

Answer:

B. Store of Value

Question 4 (Multiple Answer)