Mankiw Macroeconomics: Chapter
16/17 Questions and Answers 2026.
Barter - Answer Trading goods and services directly for goods and services
Double Coincidence of Wants - Answer The accident that two people bartering have what
the other wants.
Money - Answer Set of assets generally accepted in a trade for goods and services.
Medium of Exchange - Answer The function of money when used to purchase goods and
services
Unit of Account - Answer The function of money when used as a yardstick to record debts
and post prices
Store of Value - Answer The function of money when used to transfer purchasing power to
the future
Liquidity - Answer The ease with which an asset can be converted into the economy/s
medium of exchange
Commodity Money - Answer Money with intrinsic value
Fiat Money - Answer Money without intrinsic value
Currency - Answer Paper bills and coins in the hands of the public
Demand Deposits - Answer Balances in bank accounts that can be accessed on demand by
check
Federal Reserve - Answer The central bank of the US
Central Bank - Answer An institution designed to regulate the banking system and money
supply
Money Supply - Answer The quantity of money in the economy
16/17 Questions and Answers 2026.
Barter - Answer Trading goods and services directly for goods and services
Double Coincidence of Wants - Answer The accident that two people bartering have what
the other wants.
Money - Answer Set of assets generally accepted in a trade for goods and services.
Medium of Exchange - Answer The function of money when used to purchase goods and
services
Unit of Account - Answer The function of money when used as a yardstick to record debts
and post prices
Store of Value - Answer The function of money when used to transfer purchasing power to
the future
Liquidity - Answer The ease with which an asset can be converted into the economy/s
medium of exchange
Commodity Money - Answer Money with intrinsic value
Fiat Money - Answer Money without intrinsic value
Currency - Answer Paper bills and coins in the hands of the public
Demand Deposits - Answer Balances in bank accounts that can be accessed on demand by
check
Federal Reserve - Answer The central bank of the US
Central Bank - Answer An institution designed to regulate the banking system and money
supply
Money Supply - Answer The quantity of money in the economy
