3.3 Quiz on Money

What is money?

• A type of food

• A medium of exchange, a unit of account, and a store of value

• A kind of animal

• A type of clothing

What is one use of money as a Medium of Exchange?

• To keep its value if stored

• To compare values of goods

• To determine value during exchange

• To make money disappear

What does money as a Unit of Account help us do?

• Make money grow

• Compare the values of goods

• Store money in a bank

• Spend money quickly

What is the purpose of money as a Store of Value?

• To lose its value quickly

• To keep its value if stored

• To be used immediately

• To change into other forms

What is the term for coins and paper bills used as money in a society?

• Currency

• Durability

• Portability

• Divisibility

Which characteristic of money means it must withstand physical wear and tear?

• Portability

• Durability

• Uniformity

• Acceptability

What does portability mean in terms of money?

• Money must be the same in terms of what they buy

• Money must be available in limited quantities

• People need to be able to take money with them

• Money must be easily divided into smaller units

What does divisibility mean for money?

• Money must be available in limited quantities

• Money must be easily divided into smaller units

• Money must be the same in terms of what they buy

• Everyone must be able to exchange money for goods

What does uniformity mean in the context of money?

• Money must be available in limited quantities

• Money must be easily divided into smaller units

• Any two units of money must be the same in terms of what they buy

• Everyone must be able to exchange money for goods

What does limited supply mean for money?

• Money must be available only in limited quantities

• Money must be easily divided into smaller units

• Any two units of money must be the same

• Everyone must be able to exchange money for goods