Which of the following statements about money is not true ?
Correct answer: B. All the wealth that people hold, in whatever form, should be considered as money
- A. A debit card is not really money because it is only a means of transferring money between accounts
- B. All the wealth that people hold, in whatever form, should be considered as money
- C. Wealth held in the current account you hold with your bank is almost as convenient for buying things as wealth held in your wallet so the wealth in current accounts should be included in measures of money
- D. In a complex economy it is not easy to draw a clear dividing line between assets that should be considered as money and those that should not
Explanation
Money is a particularly liquid asset used as a medium of exchange, not all wealth held by people. Property, shares and other assets may be valuable but are not normally included in measures of money.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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