Money-Budgeting-Banking

Which of the following is not a characteristic of money?

• Divisibility

• Portability

• Durability

• Responsibility

What is the Federal Reserve?

• Agency responsible for international trade
• Central credit union
• Agency responsible for collecting taxes
• Central bank of the U.S.

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

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

What is inflation?

• A fall in the general level of prices
• A rise in the general level of prices
• A rise in the GDP

During times of hyperinflation

• people often adopt something other than the official currency to use as money

• people hoard the official currency

• the purchasing power of the currency increases rapidly

• the money supply is decreasing

What function of money the picture represent? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Acceptable 

What function of money the picture represents?

• Medium of Exchange
• Store of Value
• Unit of Account
• Durable 

What function of money the picture represents? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Stable 

Last year, you sold your game system to your friend Jimmy for $125 in cash. You've been saving that money in a shoe box under your bed. You are saving the money to buy a new computer next year. What is the primary function of money exhibited here? 

• Medium of Exchange
• Store of Value
•  Unit of Account
• Stable 

At the grocery store last week, you purchased $94.25 worth of groceries. You paid for the groceries in cash. You gave the cashier four $20 bills, a $10 bill, three $1 bills, and a quarter. What is the primary function of money exhibited here? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Acceptable