Section I. Multiple Choice Questions. Circle the best possible answer (2 points each) 1. The direct exchange of one good for another good: a) requires a double coincidence of wants c). is barter b). is harder than making a trade through the use of money d). all of the above 2. Money functions as: a) a store of value c) a medium of exchange b) a unit of account d) all of the above e) none of the above 3. If you place a part of your summer earnings in a saving account, you are using money primarily as a: a) store of value c) medium of exchange b) unit of account d) standard of deferred payment 4. A $70 price tag on a sweater in a department store window is an example of money functioning as a: a) store of value c) medium of exchange b) unit of account d) standard of deferred payment 5. When economists say that money serves as a medium of exchange, they mean that it is: a) a way to keep wealth in a readily spendable form for future use b) a monetary unit for measuring and comparing the relative values of goods c) a means of payment d) declared as legal tender by the government 6. The most liquid form of money supply (M1) is: a) travelers' check c) currency b) checkable deposits d) small time deposits 7. The main function of financial institutions is to link: a) buyers and sellers in the commodity market b) government and businesses in the economy c) lenders and borrowers in the financial market d) concert goers and ticket brokers 8. Which of the following is/are financial intermediaries? a) commercial banks c) credit unions b) saving and loan associations d) all of the above e) none of the above