$78$

Multiple Choice

$1$ point

Currency held in the vault of First National Bank is

only counted as part of M$1$ if it was deposited into a checking account.

counted as part of M$1.$

counted as part of M$2$ but not M$1.$

not counted as part of the money supply.

$79$

Multiple Choice

$1$ point

The idea that money has "time value" refers to the fact that

compound interest converts future dollars into a greater amount of current dollars.

people prefer to receive a given sum of money in the future rather than in the present.

a specific amount of money is more valuable to a person the sooner it is received.

money can be used to purchase the services of labor, as measured in hourly units.

$80$

Multiple Choice

$1$ point

The transactions demand for money is most closely related to money functioning as a

store of value.

measure of value.

medium of exchange.

unit of account.

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