SP23 Unit 4 Test

Which is a good synonym for the word barter in the term barter economy?

• trade
• fiat
• specie
• monetary

Which statement best explains why money was invented?

• Money was invented to facilitate the exchange of goods and services.
• Money was invented to support a barter economy.
• Money was invented to strengthen government power and control.
• Money was invented to lift people out of poverty.

Printed on a Federal Reserve note is this statement: "THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE." This reflects money's function as

• a medium of exchange.
• a measure of value.
• a store of value.
• a scarce commodity.

The characteristics of money include all of the following except

• divisible.
• portable.
• transferable.
• durable.

Which of the following is one of the three functions of money?

• portability
• scarcity
• store of value
• divisibility

The Federal Reserve is the nation's ______ bank.

• only
• first
• oldest
• central

The Federal Deposit Insurance Corporation (FDIC) was created to

• insure customers' money against inflation.
• allow customers to make deposits at federal banks.
• insure customers' deposits if a bank fails.
• insure banks if a customer doesn't make enough deposits.

The risk of ending up with the equivalent of a never-ending loan is one of the disadvantages of using

• debit cards.
• credit cards.
• saving accounts.
• checking accounts.

What will your "creditworthiness" be based on?

• your credit history
• keeping up with payments
• having a good financial relationship with a bank
• all of these

Investment analysts recommend people to make investments in _______.

• investments that promise the highest returns
• investments that are financially complicated
• financial investments recommended by friends
• financial investments they understand