Explain which of the following count as money. a. a check in ...

[penza]

Explain which of the following count as money.
 
  a. a check in Ann's checkbook
  b. currency in Ann's bank
  c. currency in Ann's purse
  d. Ann's checking deposit

Question 2

As the number of available substitutes increases, the price elasticity of demand for a good:
 
  A) initially increases then decreases.
  B) initially decreases then increases.
  C) decreases.
  D) increases.

[soda0602]

Answer to Question 1

Only parts (c), currency in Ann's purse, and (d), Ann's checking deposit, are money. Ann's check, given in part (a), is a method of transferring money from Ann to someone else. Thus the check (itself) is not money. Part (b), the currency in Ann's bank, is not money until someone withdraws it because currency inside a bank does not count as money.

Answer to Question 2

D