Bonds & Stocks

Why is money accepted in exchange for goods or services?

• It is a legal requirement.

• Represents purchasing power and is an acceptable form of currency.

• It is a tradition.

• It is a form of barter.

What primarily gives money its value?

• The material it is made from.

• The age of the currency.

• Government endorsement and its acceptance in trade.

• The color and design of the currency.

What is described as the most basic of all financial assets in the context of banking and economics?

• Bonds

• Stocks

• Money

• Real estate

Which of the following is NOT one of the three functions of money?

• Medium of exchange

• Store of Value

• Unit of Account/Standard of Value

• Means of Production

What is described as a function of money where it can be saved and still hold its value over time?

• Medium of exchange

• Unit of account

• Store of value

• Standard of deferred payment

Which of the following is NOT an example of money being used as a store of value?

• Savings account

• Stocks

• Bonds

• CDs

What function of money is demonstrated by comparing the market values of different items such as watches?

• Medium of exchange

• Store of value

• Unit of account

• Standard of deferred payment

Which of the following is NOT an example of using money as a unit of account?

• Determining the price of a car

• Comparing the cost of different brands of watches

• Bartering goods without using currency

• Evaluating the market value of clothing

Which financial intermediary is known for having exclusive membership that leads to low interest saving?

• Bank

• Credit Union

• Payday Loan Company

• Title Pawn Lender

What can happen if you do not pay back a Title Pawn Lender?

• They will offer a renewal.

• They will increase the interest rate.

• They can take your collateral.

• They will forgive the debt.