Money and Banking Quiz

anything that is used to determine value during the exchange of goods and services

• medium of exchange

• commodity money

• fiat money

• unit of account

a means for comparing the values of goods and services

• unit of account

• store of value

• liquidity

• M1

something that keeps its value if it is stored rather than used

• store of value

• representative money

• fiat money

• unit of account

objects that have value in themselves and that are also used as money

• commodity money

• representative money

• fiat money

• M2

objects that have value because the holder can exchange them for something else of value

• representative money

• commodity money

• fiat money

• interest

money that has value because the government has ordered that it is an acceptable means to pay debts

• fiat money

• representative money

• commodity money

• principal

money that people can gain access to easily and immediately to pay for goods and services

• M1

• M2

• interest

• commodity money

M1 plus funds that cannot be used for cash directly, but can be converted fairly easily

• M2

• M1

• fiat money

• medium of exchange

the price paid for the use of borrowed money

• interest

• principal

• unit of account

• M2

the amount of money borrowed

• principal

• interest

• store of value

• unit of account