1. Definitions and history of money Select the correct term for each of the following definitions. Definition Term An interest-earning account, at a commercial bank or thrift institution, that requires a minimum balance and offers limited check-writing privileges An interest-earning deposit with a specified maturity date Any good that is widely accepted for purposes of exchange and in the repayment of debt Which of the following are true of a barter economy? Check all that apply. Money evolved out of a barter economy as traders sought to make trading easier. The transaction costs of exchanges are lower in a barter economy than in a money economy. Average living standards can be expected to be lower in a barter economy than in a money economy.

Please refer to Explanation

Explanation:

1.

a) An interest-earning account, at a commercial bank or thrift institution, that requires a minimum balance and offers limited check-writing privileges.

MONEY MARKET DEPOSIT ACCOUNT.

- A Money Market Deposit Account is an account at a bank or thrift institution that earns the market return I the money market. Checks and debit cards may be used albeit with a limit.

b) An interest-earning deposit with a specified maturity date.

- TIME DEPOSIT

This is an account from which the owner may not withdraw until it matures at a specific date. They could incur heavy penalties if they insist on withdrawing.

c) Any good that is widely accepted for purposes of exchange and in the repayment of debt.

- MONEY.

Money is a medium of exchange that enables one to exchange for goods and services as well as to repay debt.

2. Money evolved out of a barter economy as traders sought to make trading easier.

This is true of barter trading. Barter trading is the exchange of a good or service for another good or service that the buyer wants. For example, a chicken for a hair cut.

People got tired of this system as it was very inefficient and had high transaction costs. They therefore sought an easier measure of exchange and that was how money was formed.

Average living standards can be expected to be lower in a barter economy than in a money economy.

- Yes indeed. In a barter economy, transaction costs are high and people don't have a variety of goods to choose from when buying. For example, you might want a to buy a maize mill to process Corn as well as other things but all you have is a cow. The Corn Mill seller may not want a cow so you can't buy the Mill. If you had money from selling the cow though you could easily but the Mill and improve your life.

was my answer wrong?

answer; proclamation of 1763;