BMF Unit 4 Review

What are the three functions of money?

• medium of exchange, store of value, unit of value

• medium of exchange, store of value, provides barter

• store of value, medium of exchange, creates instability

Money must be able to withstand the wear and tear of many people using it.

• Divisibility

• Durability

• Limited Supply

• Acceptability

Trade is made easier because of this function of money that eliminates the need to barter (trade goods for goods).

• Store of Value

• Medium of Exchange

• Unit of Account

• Divisibility

Which function of money encourages people to save money?

• Medium of Exchange

• Store of Value

• Unit of Account

• Acceptability

Money must be widely accepted in exchange for goods or services.

• Divisibilility

• Acceptability

• Limited Supply

• Store of Value

Money must be easy to carry.

• Durability

• Divisibility

• Store of Value

• Portability

A request for payment you submit to your insurer following an accident or loss.

• claim

• deductible

• hazard

• insurability

To eliminate the risk completely.

• risk avoidance

• risk retention

• risk reduction

• risk transfer

What is a situation that occurs when business activities suffer due to changes in the US or world economy?

• Human Risk

• Market Risk

• Economic Risk

• Natural Risk

If injured on the job, __ insurance will cover treatment and reimburse lost wages.

• Medicare

• Employee

• Worker's Compensation