Functions of Money
Identify one function of money
medium of exchange, standard of value, store of value, means of deferred payment
it must not be spoil if kept any length of time
Durable
State Fisher's theory
MV=PQ
Identify one other form of money
online banking, debit cards, eftpos, checks
Identify Samoa's currency.
SAT
Identify the function that solves the problem of double coincidence of wants
standard of value
Has a great value
Explain why printing more money doesn't make us richer
Define checkable accounts
everyday savings and deposits
What is the first currency used by Samoa?
German money called Marks
What is another name given to Standard of Value?
Measure of value
You can easily carry
Portable
What is Fisher's Theory based on?
The relationship between money supply and the value of goods purchased in the economy
Differentiate between checkable accounts and term deposit
term deposits are investment per term.
When New Zealand took over Samoa, what currency did they introduce to the country?
pounds
When you save your money using your piggy bank, explain the function of money which is best described above.
Store of Value
Which characteristic of money is best described by velocity in Fisher's Quantity Theory of Money
Scarce
If M= 100, P= 5 and Q=500; Calculate V
100V= 2500
V= 25
Clothes are purchased using a debit card. Explain the effect of this transaction on M1
Decreases M1
When did Samoa's tala and sene introduce?
1967
Where do the banks get their money to operate? Identify which function of money is best described by this.
From people's savings and store of value
money can not be forged
Recognizable
Describe the effect of increasing in price on the purchasing power of consumers?
A shopkeeper would be breaking the law if he would only accept notes and coins as payment from his customers. True or False
False
Who is on Samoa's Hundred Tala note?
Malietoa Tanumafili II