Federal Reserve

___________ is what money is doing when it serves as payment for goods or services.

• barter
• currency
• medium of exchange

What are the four physical characteristics of money?

• durable, scarce, acceptable and portable
• portability, durability, divisibility and uniformity
• green, small, uniform and durable

Scarcity is important as an economic characteristic of money because___________
_____________.

• We need to have plenty of money in circulation
• too much money in circulation makes it worth less
• the more you have the better off you are

Money must be durable because
_________________________.

• it has to last for at least a few months
• it can't fall apart easily or it won't work as well
• it needs to be small enough to fit in your pocket

Divisibility of money is an important characteristic because
_________________________.

• it can't easily deteriorate
• you need to be able to get change when it is more that the price of the good
• it needs to be recognizable

Fiat money is accepted as payment because___________
_____________________.

• it is backed by silver
• it has separate value as another resource
• the government says it must be accepted

The stability of the government is important when it comes to which type of money?

• commodity
• fiat
• representative

What type of money do we have in the United States?

• commodity
• fiat
• representative

What is the Gold Standard?

• Money was backed up by gold

• All revenue was judged by the gold standard

• Was the way to measure diamonds

• People used gold to buy things

Generally accepted for payment for goods and services is called what?

• Store of Value
• Medium of Exchange
• Unit of Account