Hudspeth Economics: Unit 4 Money Labor and Investments

Barter means:

• Trade through metallic money only

• Trade of goods only excluding services

• Trade of very low value goods

• Trade without use of money

Which of the following is a commonly accepted definition of money?

• Any good which is commonly used as a store of value

• Any good which is exchanged for gold at a fixed rate.

• Any good which is acceptable to a bank

• Any good which is commonly accepted as medium of exchange

Which of the following is not a function of money?

• Store of value

• Medium of exchange

• Standard of currency

• Unit of account

What type of card allows you to withdraw money you have in your bank account?

• Credit Card

• Debit Card

• Bank Card

• ID Card

What is the difference between a credit card and a debit card?

• A debit card is issued by a bank, a credit card is not.

• A debit card can only be used at an ATM, while a credit card can be used to by things at stores or online.

• A debit card takes money directly from your checking account,while using a credit card is a form of borrowing

• Debit card users must pay interest to banks; credit card users collect interest from banks.

Which of the following is not a characteristic of money?

• Divisibility

• Portability

• Acceptability

• Responsibility

Currently, what is U.S. money backed by?

• Frankincense
• Gold
• Silver
• Trust that it is worth something

This characteristic of money refers to the ability to carry it with you---lightweight and easy to transport.

• portability
• uniformity
• acceptability
• stability

What is the main source of income for banks?

• Interest on loans

• Interest on deposits

• Fees

• All of the above

Banks make money by __________ it out to people and charging them ______________.

• handing, tax

• lending, interest

• lending, loans

• lending, commission