Ch. 10 banking and finance

What do you call anything that people will accept as payment for goods and services?

• bonds
• money
• savings
• stocks

Which physical property of money allows sellers to make change?

• divisibility
• durability
• portability
• uniformity

Which physical property of money explains why representative money replaced commodity money such as gold and silver?

• divisibility
• durability
• portability
• uniformity

Which economic property of money refers to its use as a medium of exchange?

• acceptability
• portability
• scarcity
• stability

Which function of money makes it easier for people to save their money to spend in the future?

• medium of exchange
• standard of value
• store of value
• uniformity of currency

Which function of money allows you to decide if you want to buy two $10 movie tickets or a $20 DVD?

• medium of exchange
• standard of value
• store of value
• uniformity of currency

Which statement best describes the original purpose of savings and loan associations?

• to allow the government to deposit tax receipts
• to allow savers to borrow money for homes
• to make loans to businesses
• to provide investment advice

Which of the following allows banks to create money by making loans?

• bank mergers
• deregulation
• electronic banking
• fractional reserve banking

Which of the following makes credit unions different from other banks?

• automobile loans
• checking accounts
• home mortgages
• membership requirements

Which of these products does NOT allow people a way to save money and earn interest?

• certificate of deposit
• home mortgage
• money market account
• savings account