Unit 6 Quiz (Role of Money)

Anything that serves as a medium of exchange, a unit of account, and a store of value

• Money
• Unit of Account
• Goods
• Services

the direct exchange of one set of goods or services for another

• Store of Value
• Currency Exchange
• Medium of Exchange
• Barter System

What is not an advantage of using a set currency?

• Durable
• Limited
• Portable
• Divisible

What is not an advantages of bartering?

• Can be done anywhere
• No government control
• Use existing goods/services
• People have to be willing

Anything that is used to determine value during the exchange of goods and services (What you physically exchange)

• Medium of Exchange
• Unit of Account
• Store of Value
• Ability of Division

a means for comparing the values of goods and services (The numeric value of an item)

• Store of Value
• Unit of Account
• Medium of Exchange
• Ability of Division

to keep value when held onto, or stored, instead of spending

• Store of Value
• Unit of Account
• Medium of Exchange
• Ability of Division

When something is $7, what is the medium of exchange?

• Dollars
• Seven

When something is $7, what is the Unit of Account?

• Dollars
• Seven

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax