Functions of Money Quiz

Which problem of barter trade has the medium of exchange function of money eliminated?

• To retain its value over time

• To make future payments

• To measure the value of goods and services

• To eliminate the need for a double coincidence of wants

Which type of money has intrinsic value based on the material it is made of?

• Commodity Money

• Quasi Money

• Demand Deposit

• Bank Notes

What is the quality of money that allows it to be easily carried around?

• Acceptability

• Portability

• Divisibility

• Durability

What is the concept of money that refers to the value assigned to money by the government or society?

• Legal Tender

• Fiduciary Issue

• Intrinsic Value of Money

• Extrinsic Value of Money

Which row shows a characteristic of money and a function of money? 

• A

• B

• C

• D

35.  It is expected that consumers will use less paper money. What is the most likely reason for this?  

1.   

2.  

• 1. Inflation reduces the value of paper money.

• 2. Other forms of money are more durable.  

• 3. More ways of making payments will be available. 

• 4. Paper money will have less intrinsic value. 

Which type of money is a form of money that is only accepted in certain areas or among specific groups of people?

• Demand Deposit

• Quasi Money

• Cryptocurrency

• Partial Money

What is the quality of money that should have limited supply in relation to its demand?

• Recognizability

• Stability in Value

• Scarcity

• Acceptability

33. Money is able to function more as a medium of exchange when 

• 1. there is a fall in production 

• 2. more people engage in subsistence production 

• 3. individuals and nations are self-sufficient 

• 4. there is specialization of labour 

Which type of money is a digital or virtual form of money that uses cryptography for secure transactions?

• Bank Notes

• Cryptocurrency

• Coins

• Commodity Money