Econ Unit 3

What is meant by "legal tender" in the context of money?

• Money that is used to measure value

• Money that must be accepted for purchases and debts

• Money that is used to store goods

• Money that is used to create services

What is the most important characteristic of money?

• Portability

• Scarcity

• Acceptability

• Durability

Why is scarcity an important characteristic of money?

• It makes money easy to carry

• It ensures money is widely accepted

• It adds value to money

• It makes money durable

What did Roman soldiers receive as part of their wages?

• Gold coins

• Silver bars

• An allotment of salt

• Copper tokens

What is the main idea of this unit?

• The history of salt

• Characteristics of exchange and money

• The value of pumpkins

• The use of glass bowls in trade

What is commodity money?

• Money that has no intrinsic value

• Money that is backed by government decree

• A good that has value in trade and is used as a medium of exchange

• Digital currency used in online transactions

What is a loan?

• A gift of money with no expectation of repayment

• A transaction where a lender gives money to a borrower who agrees to repay it

• A deposit made in a bank

• A type of commodity money

What are banknotes?

• Coins made of precious metals

• Elaborate paper receipts given in exchange for deposits

• Digital currency used in online banking

• Checks used for transactions

What characteristic made gold and silver preferred as commodity money?

• They were abundant and easy to find

• They were scarce, portable, durable, divisible, and uniform

• They were edible and consumable

• They were only used in one region

During which period did private banks arise in Europe?

• The Industrial Revolution

• The Renaissance

• The Middle Ages

• The Enlightenment