Unit 4 Money/Banking

If Ryan purchases a sandwich, he is using money as:

• A store of value

• A unit of measure

• A medium of Exchange

Helena set the price of her scarves at $20. How is she using money?

• A medium of exchange

• A store of value

• A unit of measure

Which of the following is digital currency that does not have a physical form?

• Coinage

• Cryptocurrency

• Currency

Frank has ten dollars. If he does not spend any of the money, it will keep its worth of ten dollars. How is that using money?

• A store of value

• A unit of measure

• A medium of exchange

Items used to facilitate barter, keep value, and comparison shop

• Money

• Currency

• Principal

• Portfolio

Banks keep a portion of deposits in-house and loan the rest

• Fractional Reserve Banking

• Federal Reserve Bank

• Certificate of Deposit

• Speculation

The amount one must pay to borrow money from someone else

• Interest

• Portfolio

• Diversification

• Principal

A financial institution that oversees a nation’s monetary system by regulating banks, lending money when commercial banks are not able to, and controlling the money supply.

• Financial institution

• central bank

• depository institution

• FDIC

Because it must withstand the wear and tear of every day use, money must be:

• Portable
• Durable
• Divisible
• Accepted

Money that has value because the government says it has value is called...

• Fiat Money

• Representative Money

• Currency

• Commodity Money