Functions of Money Quiz

What is the primary function of money as a medium of exchange?

• To allow people to save for future purchases

• To facilitate the exchange of goods and services

• To measure the value of goods and services

• To enable purchases on credit

Which function of money allows us to compare the worth of different goods and services?

• Medium of exchange

• Measure of value

• Store of value

• Standard of deferred payments

How does money function as a store of value?

• It allows us to exchange goods and services

• It helps us measure the worth of goods and services

• It enables us to save money for future use

• It allows us to make purchases on credit

What does the function of money as a standard of deferred payments allow us to do?

• Save money for future use

• Exchange goods and services

• Purchase goods and services on credit

• Measure the value of goods and services

Which of the following is NOT a function of money?

• Medium of exchange

• Measure of value

• Store of value

• Production of goods

Why is money considered a medium of exchange?

• Because it can be saved for future use

• Because it is a common means accepted by everyone for trading goods and services

• Because it allows us to measure the value of goods

• Because it enables credit transactions

In which function of money do both buyer and seller know how much has to be paid at a later date?

• Medium of exchange

• Measure of value

• Store of value

• Standard of deferred payments

What role does money play when it is used to set prices for goods and services?

• Medium of exchange

• Measure of value

• Store of value

• Standard of deferred payments

Which function of money is most directly related to saving for future expenses?

• Medium of exchange

• Measure of value

• Store of value

• Standard of deferred payments

How does money facilitate transactions on credit?

• By being a medium of exchange

• By being a measure of value

• By being a store of value

• By being a standard of deferred payments