ITB: Chapter 8-3 Types of Currency

What are the characteristics that something needs to possess in order to be considered money?

• Medium of exchange, unit of measure, and form of currency

• Medium of exchange, unit of measure, and store of value

• Medium of exchange, unit of measure, and promissory note

• Medium of exchange, unit of measure, and legal tender

What is the physical, tangible form of money?

• Gold

• Digital currency

• Treasury bills/notes/bonds

• Banknote

What is the official currency of the United States?

• Peso

• Euro

• Dollar

• Yen

What is the gold standard?

• A monetary standard where the basic unit of currency equals a certain quantity of paper

• A monetary standard where the basic unit of currency equals a certain quantity of silver

• A monetary standard where the basic unit of currency equals a certain quantity of digital currency

• A monetary standard where the basic unit of currency equals a certain quantity of gold

What is fiat currency?

• Government-issued paper and coins with limited supply

• Government-issued paper and coins backed by gold or silver

• Government-issued paper and coins backed by the government

• Government-issued paper and coins with intrinsic value

What is the advantage of fiat currency?

• Has limited supply and easy to produce and control the supply of

• Has intrinsic value and easy to produce and control the supply of

• Backed by gold or silver and easy to produce and control the supply of

• Backed by the government and easy to produce and control the supply of

What is the disadvantage of fiat currency?

• It has no intrinsic value

• It is not backed by the government

• It is difficult to produce and control the supply of

• It has limited supply

What gives fiat currency its value?

• The belief and guarantee by the federal government

• The belief and guarantee by the central bank

• The belief and guarantee by the World Bank

• The belief and guarantee by the international community

What is the main form of currency in the United States?

• Digital currency

• Treasury bills/notes/bonds

• Cash

• Gold

What is the value of a dollar bill?

• Value determined by the international community

• Value backed by gold or silver

• Value given by the government and belief of people using it

• Intrinsic value of the paper