Money & Exchange Rate

Which of the following is NOT one of the functions of money?

• Medium of Exchange

• Unit of Account

• Price Stabilization

• Store of Value

A type of money that is backed by a material, such as gold, is referred to as

• certificate money

• representative money

• fiat money

• commodity money

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? 

• Store of Value

• Stable 

• Unit of Account

• Medium of Exchange

A student records her income and spending for past month, she uses the function of money

• Medium of exchange

• Standard of deferred payments

• Unit of account

• Store of value

A saving account in a bank represents the function of money:

• Store of value

• A medium of exchange

• A standard for deferred payments

• A measure of value

Money or other items generally accepted as payment for goods and services.

• Measure of value

• Medium of exchange

• Scarcity

• Store of Value

Money has what if it doesn't deteriorate when it is being handled?

• Scarcity

• Divisibility

• Durability

• Portability

A definition of fiat money is currency that

• has intrinsic value other than as a means to exchange goods and services.

• can be exchanged for a set amount of a commodity.

• is backed by investments.

• is legal tender based on government decree.

Commodity money can be best described as money that is

• backed up by a valuable material

• valuable based on the material that the money is made from

• used to purchase valuable materials

• valuable because a government says it is and people accept that it is valuable

Money in the United States is which type of money?

• fiat money

• representative money

• commodity money

• speculative money