Online class. Money and Banking

Why do bank notes often used as money?

• They have an intrinsic value

• They are durable

• They are generally acceptable

• They are portable

Which of the following is a function of money?

• Store of value

• Unit of account

• Durability

• 1 and 2

What is the best explanation of 'standard for deferred payment'as a function of money?

• Money can be used for a long period of time

• Money can be used for future payments

• Money can measure good's value

• Money can be used to buy goods

Why the use of money is better than barter?

• Barter finds easy double coincidence of wants

• Barter avoids indivisibility of goods

• In barter durability issue might arise

• None of the above

What is a commercial bank?

• A government bank

• A banker's bank

• A retail bank operated for profit

• None of the above

Which of the following is a function of commercial bank?

• Lender of last resort

• Accepting deposits

• Printing money

• Providing regulatory services for other banks

`which function is performed by both commercial and central banks?

• Printing money

• Dealing with foreign currency

• Operating monetary policy

• Giving loan to people

Define central bank

Identify any two function of a central bank.

Explain the functions of money associated with lending and saving money.