There is much debate about whether the U.S. government should eliminate the penny from circulation and instead round all prices to the nearest 5 cents for everyday cash transactions. Which function of money does a penny not serve well?
a) Medium of exchange
b) Unit of account
c) Store of value
d) The penny does not serve any of the functions of money well.
Ans: a) Medium of exchange
Economics
You might also like to view...
How much trade do currency unions create?
What will be an ideal response?
Economics
Scientists studying human behavior have found that people tend to:
A. Always make rational decisions B. Make systematic errors in their decisions C. Make only random errors in their decisions D. Always make decisions that are not rational
Economics