GB Ch. 7&8

When money is deposited in a bank for future use, it is being used as a 

• medium of exchange

• measure of value

• payment on account

• store of value

When currency is given to a store owner in exchange for a good or service, the currency is being used as a

• medium of exchange

• measure of value

• payment on account

• store of value

When a store owner charges $5 for an icecream cone the money is being used as a

• medium of exchange

• measure of value

• payment on account

• store of value

The foreign exchange rate on the dollar always stays the same from one day to the next.

• True

• False

If a country imports more than the export, the value of the nation's currency will go down.

• True

• False

The value of a country's currency would be increased by - 

• political instability

• a country's imports being higher than their exports (a poor balance of trade)

• lower inflation

• higher interest rates

A monetary unit that is freely converted into other currencies is called hard currency 

• True

• False

Copyright refers to the protection of an original work by an author, artist, or composer

• True

• False

If a country experiences high foreign demand for its products the demand results in 

• a weak currency for the country

• a strong currency for the country

If a country's debt increases significantly, what happens to the currency's value?

• it increases

• it decreases