What is Money?

What is money?

• A medium of exchange

• A type of plant

• A form of transportation

• A kind of animal

What is the exchange rate?

• 1.12 USD to EUR

• 0.85 USD to EUR

• 1.00 USD to EUR

• 0.75 USD to EUR

What is money with intrinsic value called?

• Fiat Money

• Commodity Money

• Digital Money

Fill in the blank: Money without intrinsic value is called _______.

• Fiat Money

• Commodity Money

• Cryptocurrency

• Barter

What is a characteristic of commodity money?

• It has no intrinsic value.

• It has intrinsic value.

• It is based on trust.

• It is digital.

Which of the following is an example of commodity money?

• Paper currency

• Digital currency

• Gold

• Credit card

Fill in the blank: The value of commodity money is based on the worth of the ______ itself.

• commodity

• paper

• government

• promise

What is one drawback of commodity money?

• It is not durable.

• It is not easily divisible.

• It has intrinsic value.

• It is not widely accepted.

Which of the following is a drawback of commodity money?

• Stable value

• Predictable inflation

• Lower quality commodities can drive higher quality ones out of circulation.

• No historical examples of inflation

Historical examples show the drawbacks of commodity money.

• Commodity money can be bulky and difficult to transport.

• Commodity money is always stable in value.

• Commodity money is universally accepted without any issues.

• Commodity money does not require any storage.