Milk is not used as a form of money primarily because it cannot function as a me
ID: 1215767 • 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 I933 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 even deposit. increase reserve requirements for commercial banks to 100 percent of deposits.Explanation / Answer
8. (d) a store of purchasing power as money cannot be stored for future use.
9. (d) to serve as middlemen between savers and borrowers
10. (b) discourage bank runs by insuring deposits in banks.