Money Exam

When you use money to purchase your lunch, that cost $4.99, money is serving which role(s)?

I. medium of exchange

II. store of value

III. unit of account

• I only

• II only

• III only

• I and III only

• I, II, and III

When you decide you want “$20 worth” of a product, money is serving which role(s)?

I. medium of exchange

II. store of value

III. unit of account

• I only

• II only

• III only

• I and II only

• I, II, and III

In the United States, the dollar is

• backed by silver.

• backed by gold and silver

• commodity-backed money.

•  commodity money.

• fiat money.

The double coincidence of wants problem can be solved by

• more resources

• more production

• money

• economic growth

Which of the following is the best example of using money as a store of value?

• A customer pays in advance for $10 worth of gasoline at a gas station.

• A babysitter puts her earnings in a dresser drawer while she saves to buy a bicycle.

• Travelers buy meals on board an airline flight.

• Foreign visitors to the United States convert their currency to dollars at the airport.

The U.S. dollar derives its value from what? That is, what “backs” U.S. currency?

What other two types of money have been used throughout history? Define

Who prints our US dollar bills?

Who makes our US coins?

What does the secret service do?