Money and Government Test Review

What is currency?

• Paper money or coins used as a medium of exchange.

• A figment of imagination.

• The term given to all types of economic exchanges.

• The term that gives money it's value.

What are the six characteristics of money?

• Capability, acceptability, multiplicity, transferable, dense, and uniformity.

• Acceptability, divisibility, durability, portability, uniformity, and limited supply.

• Intelligibility, acceptability, durability, readiness, availability, and universal exchange.

• Durability, acceptability, war readiness, portability, uniformity, and limited supply.

What is the "mutual coincidence of wants"?

• When a person is mutually attached to the same type of currency as others are.

• When someone is able to mutual exchange currencies across different nations.

• When you have mutual friends with someone on Facebook.

• When two people want exactly what they are willing to barter for.

What is bartering?

• The exchange of goods rather than currency.

• The process of stealing things from others by haggling.

• A system that uses different currencies as a medium of exchange.

• When two people trade gold for silver instead.

What is an example of commodity money?

• Coins.

• Dollar bills.

• Gasoline.

• Debit cards.

What is an example of fiat money?

• Coins.

• Paper money.

• Xbox X

• Seashells.

What are the three functions of money?

• Medium of exchange, measure of value, and store of value.

• Buy you stuff, makes you wealthy, makes you happy.

• Medium of exchange, measure of value, and unit of calculation.

• Measure of value, able to be put into different accounts, and store of value.

What is the Federal Reserve (Fed)?

• A giant bank that regulates all over-seas accounts for rich people.

• A bank that serves primarily as a bailout system for multi-national companies.

• The "central bank" of the United States.

• The "central bank" of the United Kingdom.

All of these were problems with the first banking system of the U.S. except?

• Had many different state currencies.

• It provided securities to those that lost money from the financial system.

• Was highly unregulated by the government.

• Had no regulation for interstate commerce.

What does legal tender mean?

• Money that doesn't need a serial code to be accepted.

• Money that is known all around the world.

• Money tenderized by the government.

• Money that is required to be accepted as payment.