Choose all that are appropriate.

Question $30$Answer

$1.$

Under the traditional view on the history of money, money emerged so as to increase efficiency of exchange by superseding barter, which required a coincidence of wants.

$2.$

In the modern economy, bank deposits function as money alongside coins and banknotes.

$3.$

Banknotes circulating within an economy are guaranteed by governments.

$4.$

A form of money that people are required by law to treat as satisfactory payment is called legal tender, and accordingly, a merchant must always accept such money if requested by a customer.

$5.$

Money in circulation will decrease if economic agents decide to borrow from banks, because banks' cash will be drained in the process.