FinLit Unit 1 Quiz Review

What is a Medium of Exchange?

• A tool used to determine the price of a good or service

• Something used as a payment method

• Something used to manufacture coins

• A place where people exchange money for gold

What is Commodity Money?

• Something used as money that also has inherent value

• Something that has no inherent value

• A trade good that is made out of gold

• A service provided as a form of barter

What is Fiat Money?

• Something used as money that has no inherent value?

• Something used as money because it has an inherent value

• Coins made of precious metals

• Counterfeit money

What is an example of a precious metal?

• Gold

• Zinc

• Copper

• Nickel

What is Representative Money?

• Something that is used as money, but has no intrinsic value

• Something intrinsically valuable that is used as money

• Precious metals, such as gold and silver

• Base metals, such as zinc and copper

Why was Gold used to mint coins?

• Gold has value based on its weight

• Gold is hard to break

• Gold is very common and easy to find

• Gold had no intrinsic value

What is the Federal Reserve?

• A place where a nation stores its gold reserves

• A place were gold coins are made

• The first kingdom on earth to mint gold coins

• The place where dollar bills are printed

What is a Banknote?

• A type of representative money printed by the government

• A receipt from a store

• A coin made of base metals

• A record of your bank

What is Inflation?

• When money loses its buying power

• When money gains more buying power

• When there is less gold to make coins

• When the reserve runs out of gold

What is Deflation?

• When money loses its buying power

• When money gains more buying power

• When there is less gold to make coins

• When the reserve runs out of gold