Which of these statements about money is true?

• Money is easy to handle

• Money is easily divided into smaller parts

• The value of the money remains stable over the course of time

• All of these are true

Money is a medium of exchange. Which of these statements illustrates this fact?

• Money allows us to easily buy and sell goods. Without it, we’d all have to barter

• Money gives us the opportunity to save and make purchases at a later date

• Money allows us to measure the value of a good against a meaningful standard

• A.None of these

Money is a store of value. Which of these statements illustrates this fact?

• Money allows us to easily buy and sell goods. Without it, we’d all have to barter

• Money gives us the opportunity to save and make purchases at a later date

• Money allows us to measure the value of a good against a meaningful standard

• A.None of these

Money is a measure of worth. Which of these statements illustrates this fact?

• Money allows us to easily buy and sell goods. Without it, we’d all have to barter

• Money gives us the opportunity to save and make purchases at a later date

• Money allows us to measure the value of a good against a meaningful standard

• None of these

Our most liquid forms of money are measured as:

• M-1

• M-2

• M-3

• None of these

An order to a bank to pay a given sum to a “payee” is known as a:

• Time deposit

• Mutual fund

• Check (Cheque)

• All of these

A certificate of deposit (CD) has a fixed term and is usually held to maturity. A CD is also known as a(n):

• Checking account

• Time deposit

• Mutual fund

• Insurance

A company that accepts deposits, makes loans, pays interest to depositors, and pays dividends to its owners.

• Pension fund

• Savings & Loan Association

• Commercial banks

• Savings institution

The interest rate that a bank offers to its most creditworthy customers is known as:

• Fed funds rate

• Prime rate

• Book value

• Dividend

The state of Iowa manages a pool of funds that will provide retirement benefits for state employees.

• The state of Iowa is managing a pension fund

• The state of Iowa is managing a credit union

• The state of Iowa is managing an S&L

• None of these are true