Milk is not used as a form of money primarily because it cannot function as a me
ID: 1215756 • Letter: M
Question
Milk is not used as a form of money primarily because it cannot function as a medium of exchange. a means of payment a unit of account. a store of purchasing power. The purpose of financial intermediaries is to discourage consumption spending. to control economic growth. to collect income taxes for the government. to serve as middlemen between savers and borrowers. The FDIC was established in 1933 to force banks to be more cautious in their lending practices. discourage bank runs by insuring deposits in banks. guarantee that a minimum rate of interest is paid on every deposit. increase reserve requirements for commercial banks to 100 percent of deposits.Explanation / Answer
8. (d) a store of purchasing power as milk cannot be used for future use.
9. (d) to serve as middlemen between savers and borrowers.
10. (b) discourage bank runs by insuring deposits in banks.