The Role of Money

Which of these is NOT one of the three uses of money?

• A medium of exchange

• A store of value

• A means to barter

• A unit of account

Which of the following is a negative aspect of bartering rather than using currency?

• Bartering requires you to find someone who wants what you have.

• Bartering does not require you to have any cash.

• Bartering usually takes less time than using currency.

• Bartering makes it easy to determine the relative value of items.

The fact that coins can last a long time in circulation shows which characteristic of money?

• Money is portable.

• Money is durable.

• Money is divisible.

• Money is uniform.

Which of the following is an example of money's divisibility? A. B. C. D.

• Coins and bills can last a long time in circulation.

• Twenty dollar bills are easy to carry around in a wallet or pocket.

• A ten dollar bill can purchase a five dollar item, with five dollars change coming back.

• If Jane and Ranita both have a ten dollar bill they can purchase the same $10 t-shirt.

Which of the following is an example of commodity money put to use? A. B. C. D.

• A cow used to purchase land

• Mowing a lawn for a friend who, in turn, gives you a haircut

• Giving a store clerk a five dollar bill for a $4 purchase

• Writing an I.O.U. to a friend in exchange for a loan