Functions of Money Quiz

What is the function of money that facilitates transactions between buyer and seller?

• A store of value

• A medium of exchange

• A unit of account

• A standard of deferred payment

Which function of money refers to its ability to hold value over time?

• A medium of exchange

• A unit of account

• A store of value

• A standard of deferred payment

What is the function of money that provides a nominal unit of measure for valuing products and assets?

• A standard of deferred payment

• A medium of exchange

• A store of value

• A unit of account

Which function of money is used to settle debts in a market?

• A store of value

• A medium of exchange

• A standard of deferred payment

• A unit of account

What is one advantage of using money as a medium of exchange?

• It requires a double coincidence of wants.

• It can only be used for buying goods.

• Everyone will accept money as they know they can use it to buy what they want.

• It is only useful for selling services.

What was a problem with the barter system?

• It allowed for easy trade of goods and services.

• It required a double coincidence of wants.

• It was universally accepted like money.

• It eliminated the need for money.

What is the barter system?

• A system where goods and services are exchanged for money

• A system where goods and services are exchanged for other goods and services without using money

• A modern method of commerce using digital currency

• A system of trade using only precious metals

How has the internet influenced the barter system?

• It has eliminated the need for bartering

• It has made bartering illegal

• It has facilitated online platforms for bartering

• It has replaced bartering with digital currency

What is one advantage of the barter system?

• It requires the use of money.

• It helps in building relationships.

• It is always easy to find a trade partner.

• It provides exact value for goods.

Why might the barter system be useful during an economic crisis?

• It increases the use of money.

• It allows people to get what they need without money.

• It makes goods more expensive.

• It stops all trade activities.