Money and Banking Test

The average coins life span is about how long?

• 5 years

• 10 years

• 15 years

• 25 years

What is NOT a characteristic of money? 

• Divisible
• Portable
• Acceptable
• Accessible

What was the first economic system

• Cash money exchange

• Gold exchange

• Barter System

• Capitalism

What characteristic of money the picture represents? 

• Divisible
• Acceptable
• Portable
• Stable 

What is likely to happen to money in the future?

• Physical currency will disappear and we will use digital cash.

• Physical currency will stay the same and the internet will disappear.

• physical currency will disappear and we will use cowrie shells.

What characteristic of money the picture represents? 

• Scarce
• Divisible
• Stable
• Durable 

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.

What function of money the picture represents? 

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

What is the Federal Reserve?

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

________________: money in the form of gold or silver coins

• fiat

• barter

• commodity

• specie