Grade 10 Money

1. What is the primary function of money?

• Store of value
• Medium of exchange
• Unit of account
• All of the above

2. Which of the following is NOT a characteristic of money?

• Durability
• Portability
• Divisibility
• Elasticity

3. What was the earliest form of money?

• Metal coins
• Paper notes
• Barter system
• Digital currencies

4. What is the main purpose of a central bank?

• To allow individuals to open accounts
• To lend money to businesses
• To control the money supply and regulate the financial system
• To buy and sell stocks

5. What is inflation?

• The increase in the general level of prices
• The decrease in the general level of prices
• The increase in the money supply
• The decrease in the money supply

6. What is the opposite of inflation?

• Stagflation
• Hyperinflation
• Deflation
• Disinflation

7. Which of the following is a type of barter system?

• Double coincidence of wants
• Fiat money
• Commodity money
• Representative money

8. What is the primary objective of commercial banks?

• To make profits
• To regulate the financial system
• To control the money supply
• To lend money to the government

9. What is fractional reserve banking?

• Banks only lend a fraction of their deposits
• Banks only keep a fraction of their deposits as reserves
• Banks lend all their deposits
• Banks keep all their deposits as reserves

10. Which of the following is NOT a function of a central bank?

• Issuing currency
• Setting interest rates
• Collecting taxes
• Acting as a lender of last resort