Unit 1 Money Vocabulary

What is the term for a way for people to exchange goods and services without the exchange of money in a manner beneficial for all involved?

• Commodity

• Bartering

• Legal Tender

• Fiat Money

What is an item that has value in and of itself called?

• Money

• Legal Tender

• Commodity

• Representative Money

What is money (coin or banknote) that a government or court has authorized as acceptable for payment of debts called?

• Fiat Money

• Legal Tender

• Purchasing Power

• Anti Counterfeiting

What term describes anything that is widely accepted as a form of payment for goods and services or repayment of debt?

• Money

• Commodity

• Inflation

• Deflation

What term describes how many goods and services can be bought for a given amount of money?

• Representative Money

• Purchasing Power

• Federal Reserve

• Anti Counterfeiting

What type of money does not have value on its own and only has value in the commodity it represents?

• Fiat Money

• Legal Tender

• Representative Money

• Commodity

What is the term for when the prices of many goods and services rise together?

• Deflation

• Inflation

• Purchasing Power

• Bartering

What is the term for when the prices of many goods and services fall together?

• Inflation

• Deflation

• Legal Tender

• Commodity

What is money by decree, where the government can declare an item to be money?

• Fiat Money

• Legal Tender

• Representative Money

• Commodity

What is the central bank of the United States, responsible for overseeing the monetary system of the United States?

• Anti Counterfeiting

• Federal Reserve

• Legal Tender

• Purchasing Power