FHS Unit 4 Chapters 1&2

The difference between representative money and fiat money is that

• representative money is worth more than fiat money.

• fiat money is counted in coins; representative money is counted in paper dollars.

• fiat money is more durable than representative money.

• representative money is backed by silver or gold, ; fiat money is not.

Which of the following is not a characteristic of money?

• Divisibility

• Portability

• Acceptability

• Responsibility

This characteristic of money refers to the ability to carry it with you---lightweight and easy to transport.

• portability
• uniformity
• acceptability
• stability

This is money that has another useful purpose.

• fiat
• commodity
• debt
• securities

Anything of value

• asset

• equity

• liability

• medium of exchange

Which of the following is NOT a function of money?

• Store of value

• Unit of account

• Medium of exchange

• Exchange of debt

The fact that a $10 bill received today will still be worth $10 100 years from now is an example of which function of money?

• Store of value

• Unit of account

• Medium of exhange

This type of money is valuable because it is made of something valuable.

• Commodity money

• Representative money

• Fiat money

This type of money consists of a certificate or token that can be exchanged for an item of value.

• Commodity money

• Representative money

• Fiat money

This type of money does not have any intrinsic value and does not represent an asset in a vault.

• Commodity money

• Representative money

• Fiat money