PF 2-1 Vocab & Lesson Review

Where goods and services are exchanged directly for other goods and services without a medium of exchange, like money being used.

• Barter System

• Medium of Exchange

• Currency

• Money

An instrument that represents a standard and agreed upon value, used to purchase goods and services and to pay debts.

• Store of Value

• Medium of Exchange

• Currency

• Money

The official form of money in active circulation within a country, including both physical forms like paper bills and coins, as well as the digital or accounting representation of it within the banking system.

• Money

• Unit of Measure

• Currency

• Store of Value

A medium of exchange that facilitates the buying and selling of goods and services in an economy.

• Barter System

• Money

• Unit of Measure

• Tokens

An asset that maintains its value over time without depreciating significantly.

• Medium of Exchange

• Unit of Measure

• Store of Value

• Barter System

Which of the following is NOT a function of money?

• Medium of Exchange

• Unit of Measure

• Store of Value

• Portability

What function of money allows individuals to save and use it in the future?

• Unit of Measure

• Store of Value

• Medium of Exchange

• Limited Supply

Which characteristic of money ensures that all units of the same value are accepted as equal?

• Divisibility

• Uniformity

• Durability

• Limited Supply

What was the primary reason for the transition from a barter system to the use of money?

• Need for a durable medium

• Need for a portable medium

• Need for a divisible medium

• Need for a universally accepted medium of exchange

Which characteristic of money makes it easy to transport and use in transactions wherever you go?

• Durability

• Portability

• Divisibility

• Limited supply