Quiz #1 Money

The direct exchange of goods and services for other goods and services

• Barter

• Direct exchange

• Money

• Subsistence economy

Anything that is acceptable as a means of settling debts.

• Money

• Barter

• Indirect exchange

• Subsistence economy

Which characteristic of money describes its ability to withstand being used repeatedly?

• Portability

• Divisibility

• Durability

• Scarce

Today different notes and coins convey fractional values since money must be

• divisible.

• portable.

• durable.

• scarce.

There are restrictions on the amount of money in circulation to ensure that values remain relatively constant. This feature of money is known as

• durability.

• divisibility.

• scarcity.

• homogeneous.

Individuals must be able to carry money and transfer it easily to other individuals. Therefore, money must be

• divisible.

• durable.

• portable.

• scarce.

Money can be used as a means to compare values of goods and services. Therefore, money acts as a

• medium of exchange.

• store of value.

• standard of deferred payment.

• unit of account.

Money can be used to pay for a good in the future while enjoying the good today. Therefore, money acts as a

• medium of exchange.

• store of value.

• standard of deferred payment.

• unit of account.

Money eliminates the problem of double coincidence of wants and acts as a common ground for determining value . Therefore, money acts as a

• medium of exchange.

• store of value.

• standard of deferred payment.

• unit of account.