Functions of Money Quiz

Match the following functions of money with their correct descriptions.

• Measures and compares the value of goods and services

• Unit of Account

• Facilitates exchange but does not communicate effectively

• Medium of Communication

• Provides power to machines, not an economic role

• Means of Transportation

• Facilitates movement of goods and people, not a direct function of money

• Source of Energy

What does money as a 'Medium of Exchange' eliminate?

• The need for banks

• The complications of bartering

• The use of credit cards

• The requirement for loans

How does money function as a 'Store of Value'?

• By being easy to transport

• By allowing for immediate consumption

• By preserving purchasing power for future consumption

• By measuring the value of goods and services

What is the function of money described as allowing individuals to buy goods and services without the complications of bartering?

• Unit of Account

• Store of Value

• Medium of Exchange

• Standard of Deferred Payment

Which function of money involves using it to measure the value of goods and services?

• Medium of Exchange

• Store of Value

• Unit of Account

• Standard of Deferred Payment

How does money function as a 'Store of Value'?

What is money used for according to the text?

• To create complications in trading

• To buy goods and services without the complications of bartering

• To make transactions more difficult

• To decrease the efficiency of getting paid

What must money always be according to the text?

• Difficult to use

• Limited to certain areas

• Easily transacted

• A way to create hassle

What is implied as a benefit of money when buying apples at a local grocery store?

• It causes problems

• It is inconvenient

• It allows for a convenient exchange

• It reduces the grocery store's inventory

What is one of the efficiencies of money mentioned in the text?

• It complicates getting rewarded for work

• It makes it harder to determine what you should get

• It's an efficient way to get rewarded for your work without hassle

• It requires bartering to determine value