Fiat Money

Open Ended

1. 1. What are the properties of money? 

2. 2. What are the characteristics of money? 

1. 3. What has served as money for most of human history?

Open Ended

1. 1. What is a commodity good? 

2. 2. What are some historical examples of commodity money? 

3. 3. What is fiat money? 

4. 4. Where is commodity money still commonly used? 

Drag and Drop

What example of fiat money?

Placeholder

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Gold coins

Wampum

Silver bars

Paper currency

Multiple Choice

What is the Federal Reserve System?

• A publicly owned, privately controlled, central bank of the US

• A privately owned, publicly controlled, central bank of the US

• A privately owned, privately controlled, central bank of the US

• A publicly owned, publicly controlled, central bank of the US

Multiple Choice

What is commodity money?

• Money that has no alternative use

• Money that has an alternative use as an economic good

• Money that is only used for trading

• Money that is backed by gold

Multiple Choice

In a barter economy, how could a milkman with a pail of milk obtain a pair of shoes if the cobbler wanted a basket of fish?

• By using money to buy the shoes

• By trading the milk directly for the shoes

• By finding someone who wants milk and has fish to trade with the cobbler

• By borrowing the shoes and promising to pay later

Drag and Drop

What types of money did American colonists use?

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Only fiat money

Only commodity money

Both commodity and fiat money

Neither commodity nor fiat money

Multiple Choice

What is fiat money?

• Money that has intrinsic value

• Money that is backed by gold

• Money by government decree with no alternative value or use as a commodity

• Money that is used only in international trade

Multiple Choice

What was the triangular trade?

• Trade between the colonies, Africa, and the Caribbean Islands

• Trade between Europe, Asia, and Africa

• Trade between North America, South America, and Europe

• Trade between the colonies, Europe, and Asia

Dropdown

What was the standard unit of currency in Colonial America?

Select answer

Multiple Choice

Which of the following is a characteristic of modern money related to portability?

• It is lightweight and easily transferred from one person to another.

• It doesn't deteriorate when handled.

• Metallic coins last about 18 months.

• It is difficult to transfer from one person to another.

Multiple Choice

Which of the following is a characteristic of modern money related to divisibility?

• Money must be available, but be in limited supply

• Money can be divided into smaller units so people can only use as much as they need

• Money must be durable and long-lasting

• Money must be universally accepted

Dropdown

Which of the following is NOT one of the three functions of money?

Select answer

Multiple Choice

What does the 'store of value' function of money allow people to do?

• Exchange goods and services

• Measure value in dollars and cents

• Preserve value for future use

• Produce goods

Multiple Choice

What is a demand deposit account?

• An account whose funds can be removed by writing a check or using a debit card

• An account used for long-term savings

• An account that earns interest over time

• An account used exclusively for online transactions

Multiple Choice

What is the M2 Measure of modern money?

• A narrow definition of money supply conforming to money’s role as a medium of exchange

• A broad definition of money supply conforming to money’s role as a medium of exchange and a store of value

• A measure including only coins and currency

• A measure excluding traveler’s checks

Multiple Choice

What is the M1 Measure of modern money?

• A broad definition of money supply including M1 plus savings deposits, time deposits, and money market funds

• A narrow definition of money supply conforming to money’s role as a medium of exchange

• A measure including only coins and currency

• A measure excluding traveler’s checks