首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
What are the three major functions of money? Describe how drastic inflation can undermine the ability of money to perform these
What are the three major functions of money? Describe how drastic inflation can undermine the ability of money to perform these
admin
2011-01-15
56
问题
What are the three major functions of money? Describe how drastic inflation can undermine the ability of money to perform these three basic functions.
选项
答案
Money acts as (1) a medium of exchange—enabling the purchase of goods and services, (2) a store of wealth—the ability to delay purchase yet maintain wealth, and (3) a unit of account—the assignment of a monetary value to goods and services permitting a comparison of relative value, both currently and over time. Drastic inflation refers to a period of rapid escalation in prices, meaning the purchasing power of money plummets. We may observe sellers unwilling to accept money and using it, they find its purchasing power significantly eroded. Then money is not acting as a medium of exchange. When its purchasing power is declining, money is obviously not a good store of wealth. Also in such periods, borrowers benefit at the expense of savers, as they repay dollars that have lower purchasing power than the dollars they initially borrowed, and we may find some prices escalate more rapidly than others. Then money is not functioning as a good unit of account. If rampant inflation does occur, money ceases to perform its functions well and individuals may mm to barter as a means of organizing the exchange of goods and services. This is an inefficient outcome for the economy.
解析
转载请注明原文地址:https://kaotiyun.com/show/b3Yd777K
0
中级(经济学)
原金融专业英语(FECT)
金融英语(FECT)
相关试题推荐
Whatdotheythinkadoctorshouldbe?
Whatdotheythinkadoctorshouldbe?
InAmsterdam(阿姆斯特丹),thereisanunusualChildrenRestaurant.Itisrun(经营)bychildren.Fromthemanagertothecooks,waitersa
EveryTuesday,Carinagoestoworkinabank.Sheknowsallhercustomers(顾客)verywell,becausetheyareherclassmates.Infa
NarberthLibraryoffersyoupleasurereadingandagreatnumberofinformationservices.TheLibrarywasbuiltin1921byamemb
Mr.Ting’snetcashinflowfromoperatingactivitiesfortheyearending30Juneis$123,000.Thefollowingadjustmentswereincl
Abusinesshasthefollowingfiguresfortheyearended31December2000$Stockatbeginningofperiod85,000Stockattheend
Whichoneisnotincludedinthefinancialstatementfootnote?
Theexpansionaryfiscalpolicyhas______
Financialintermediaries’primaryfunctioninfinancialmarketsistoserveas______.
随机试题
习近平新时代中国特色社会主义思想的核心要义是()
行车中遇残疾人影响通行时,应主动减速礼让。
关于多柔比星和柔红霉素的叙述不正确的是
下列哪一基因缺陷可导致Glanzmann血小板无力症
A.食积B.脾阳虚C.食物中毒D.胃热E.湿阻
对经络生理功能论述不准确的是
根据R.Murphy的观点可将土地使用布局归于三种理论,其中不属于这三种理论的有()
一批货物海运到雅加达,毛重15吨,体积21立方米,基本运费计算标准为W/M,其计费重量为12吨。()
有价证券抵押贷款的风险取决于()。[2005年真题]
1.从历史数据看,我国出口与工业增速有高度同步的特征,外贸出口受阻将直接影响1二业生产,特别是出口加工生产。2009年5月份最新统计数据显示,全国各种工业企业增加值增长虽然已经呈现逐步回升趋势,但仍比上年同期回落了7.1个百分点,同时CPI同比下降了7.2
最新回复
(
0
)