Money and Banking

The fact that money can withstand the wear and tear that comes from being used over and over again is a measure of its

• portability

• currency

• durability

• uniformity

Divisibility means that money can be easily divided into

• smaller units of value

• currency and coins

• representative money and fiat money

• different units of exchange

Two units of the same type of money must be the same in terms of what they will buy, which is the principle of

• functionality

• pricing

• value

• uniformity

When you pay for a new CD with a debit card, you are using the electronic form of a payment by

• money order

• personal check

• credit card

• cashier’s check

Which of the following is the biggest disadvantage of using sea shells instead of coins as money?

• durability

• uniformity

• portability

• value

The main purpose of the FDIC is to make sure that

• commercial and investment banks do not fail.

• customers do not lose money if a bank fails.

• banks charge a fair amount of interest on loans.

• the government has enough gold to cover its expenses.

Conceptually, anything is considered money if it functions as:

• a medium of exchange

• a store of value

• a unit of account

• all of the above

Which is an example of 'store of value'

• Purchasing items with token money

• Borrowing money from a friend

• Exchanging money foor goods and services

• Saving money in a bank for future use

Define the term 'barter'

• Barter is an instrument of exchange

• Barter is the exchange of goods and services with the use of money

• Barter is the exchange of one thing for another without the use of money

• Barter is a rate of exchange

"The Fed" refers to the....

• Federal Bureau of Investigation
• Federal Government
• Federal Reserve System
• Federal Income Tax