ECON 1101 FINAL EXAM QUESTIONS AND CORRECT ANSWERS. VERIFIED 2025/2026.

ECON 1101 FINAL EXAM QUESTIONS
AND CORRECT ANSWERS. VERIFIED
2025/2026.




B. a double coincidence of wants - ANS In macroeconomics, ___________________________
describes a situation in which two people each want to exchange some good or service that the
other can provide.

A. a medium of exchange

B. a double coincidence of wants

C. interrelated banking

D. the usefulness of money



C. Barter; for trying to coordinate trades - ANS ____________ is a completely inadequate
mechanism ____________________ in a modern advanced economy.

A. Currency; for providing a medium of exchange

B. Money; for providing a store of value

C. Barter; for trying to coordinate trades

D. Money; to use as a unit of account



D. medium of exchange - ANS In modern economies, credit cards are a _________________
because of their wide acceptance as a method of payment for both goods and services.

A. unit of exchange

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, B. store of value

C. unit of account

D. medium of exchange



A. M2 - ANS Which category of the money supply would you be contributing to if you invest
in money market funds?

A. M2

B. M1

C. time deposits

D. savings deposits



D. M1 - ANS Which of the following terms is considered to be a narrow definition of the
money supply that includes, among other things, currency?

A. savings

B. money

C. M2

D. M1



C. the credit card company's M1 funds. - ANS If Brent uses his credit card to purchase a new
television, then the money to pay the retailer is taken from:

A. his M1 funds.

B. his M2 funds.

C. the credit card company's M1 funds.

D. the credit card company's M2 funds.




2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.