MONEY IN ECONOMICS

What is the legal definition of money?

• It is only paper currency

• It is what the law says it is

• It must be scarce

• It is any commodity

Which of the following was NOT historically used as money?

• Cattle

• Salt

• Gold

• Plastic

What is one characteristic of money?

• It must be acceptable to people

• It must be abundant

• It must be easily destroyed

• It must be complex

Which function of money allows for the storage of value for future use?

• Store of value

• Standard for deferred payment

• Medium of exchange

• Unit of account

What type of money is defined as having intrinsic value?

• Representative Money

• Fiat Money

• Commodity Money

• Plastic Money

Which of the following is an example of paper money?

• Cowries

• Gold coins

• N100 note

• Bank draft

What is the primary purpose of legal tender?

• To be stored for future use

• To be accepted in settlement of debts

• To be used only in trade

• To serve as a collectible

Which type of money is not backed by a physical commodity?

• Token Money

• Fiat Money

• Commodity Money

• Metal Coin

What is the main characteristic of durability in money?

• It must be widely accepted

• It must stand the test of time

• It must be easily divisible

• It must be easily portable

Which of the following is an example of plastic money?

• N200 note

• Cowrie shell

• Debit card

• Gold coin