MONEY BANKING AND FEDERAL RESERVE

Money or other substance generally accepted as payment for goods and services.

• Measure of value

• Medium of exchange

• Scarcity

• Store of Value

What are the 3 functions of money?

• Measure of Gold

• Store of Value

• Medium of Exchange

• Store of Bank Notes

• Measure of Value

A student records her income and spending for past month, she uses the function of money

• Medium of exchange

• Standard of deferred payments

• Unit of account

• Store of value

A saving account in a bank represents the function of money:

• Store of value

• A medium of exchange

• A standard for deferred payments

• A measure of value

What function of money the picture represent? 

• Store of Value

• Unit of Account

• Medium of Exchange

• Acceptable 

What function of money the picture represents?

• Unit of Account

• Store of Value

• Durable 

• Medium of Exchange

Last year, you sold your game system to your friend Jimmy for $125 in cash. You've been saving that money in a shoe box under your bed. You are saving the money to buy a new computer next year. What is the primary function of money exhibited here? 

• Store of Value

• Stable 

• Unit of Account

• Medium of Exchange

At the grocery store last week, you purchased $94.25 worth of groceries. You paid for the groceries in cash. You gave the cashier four $20 bills, a $10 bill, three $1 bills, and a quarter. What is the primary function of money exhibited here? 

• Store of Value

• Unit of Account

• Acceptable 

• Medium of Exchange

Why is it important that we have a unit of account?

• breaks down currency into smaller parts to buy goods and services

• allows us to open up a checking account

• allows us to have a savings account

What does store of value mean?

• The way something is stored over time

• The ability to keep the store open for a long time

• The currency system holds its value today, tomorrow and so on