I. Multiple choice.

1. The unique and primary functionof money is that it serves as a ______________.

A. unit of account

B. generally acceptable meansof payment

C. store of value

D. means of barter

2. When using the bartersystem, it is necessary _____________.

A. to find something to serveas money

B. to engage in either director indirect finance

C. that financial markets beunregulated

D. to find a double coincidence of wants

3. When using the barter system,it is not necessary_______________.

A. to find something to serveas money

B. to engage in either director indirect finance

C. that financial markets beunregulated

D. all of the above

4. M1 contains________________.

A. travelers’ checks

B. checkable deposits

C. domestic non-financial debts

D. Both A and B

5. If either the coast is highor a substantial amount of time is needed to convert an asset to money, it isusually referred to as ___________.

A. illiquid     

B. highly liquid

C. perfectly liquid

D. near monies

6. A card with amicroprocessor chip embedded in it that usually includes a digital signature iscalled a ______________.

A. smart card

B. debit card

C. card shark                            

D. stored-value card

7. Something that serves asa generally acceptable means of payment will, of necessity, function as a__________________.

A. means of barter

B. near money

C. store of value

D. unit of domesticnon-financial debt

8. In an economy, moneypromotes ____________.

A. limited exchanges ofgoods and services

B. ineffective timemanagement

C. individual consumption

D. efficient production

9. Which of the following doesM2 contain?

A. Travelers’ checks

B. M3

C. Domestic non-financialdebts

D. Savings bonds

10. As we move from M1 to M2to M3, _____________.

A. Assets that are moreliquid are added

B. Assets that are lessliquid are added

C. Liquid assets have beenadded; they are all in M1

D. None of the above

II Define brieflythe following terms and concepts.

1.barter

2.means of payment

3.store of value

4.unit of account

5. credit money

6. monetary system

III Translate thefollowing sentences into Chinese.

1.An important and intriguingaspect of money is that while an individual may increase money holding (withinthe limits of his or her wealth) at will, the total supply of money iscontrolled not by individuals but by the central bank of a country.

2.People found in the long time production that theycould become most satisfied and the social efficiency could be the largest ifpeople with their own specialties engaged in what fitted them most andexchanged with others the products and services they produced.

3 The value of credit money depends on its general acceptancebased on the credit of its issuer.

4. If one is inclined to emphasize the store-of-valuefunction  of money rather than themedium-of-exchange function, broader measures are appropriate.

5.After World War I, no countries were able to restorethe gold coin standard. The gold bullion standard and the gold exchangestandard appeared instead. Some economists call them imperfect gold standards.

IV Translate thefollowing sentences into English.

1.商品交换有直接的物物交换与通过媒介体间接交换两种形式。

2.货币的主要只能包括交换媒介、支付手段、贮藏手段和价值尺度。

3. 世界各国货币制度的演变大致经历的银本位制、金银复本位制、金本位制和不兑现的信用货币制度等阶段。

4. 以货币为媒介的间接交换，相对于直接的物物交换，交换成本低、效率高，从而极大地促进了商品经济的发展。

5. 从货币发展的历史来看，货币可以分为商品货币、代用足值货币、电子货币等不同类型。