Money & Financial Institutions Review

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

• Measure of value

• Medium of exchange

• Scarcity

• Store of Value

What are the 3 functions of money?

• Measure of Gold

• Store of Value

• Medium of Exchange

• Store of Bank Notes

• Measure 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

What function of money the picture represents?

• Unit of Account

• Store of Value

• Durable 

• Medium of Exchange

What characteristic of money the picture represents? 

• Divisible
• Acceptable
• Portable
• Stable 

What characteristic of money the picture represents? 

• Acceptable
• Scarce
• Durable
• Stable 

I went to Vons and bought a fiesta size bag of Takis. I paid with a $20 and received three $5s, two quarters and a penny in change. What characteristic of money is displayed with this transaction?

• scarcity

• general acceptability

• divisibility

• store of value

What's the problem with using 5 pound iron bricks as money?

• portability

• unit of account

• store of value

• liquidity

Which one of the following terms is used to describe the interest rate that banks charge for the use of borrowed money?

• Deposit

• Withdrawal

• the spread

• Net Worth

Expending money with the expectation of achieving a profit.

• profiting
• budgeting
• debiting
• investing