Review : Money & Financial Institutions

1. In general, the supply of money in a modern economy is best defined as....

• Coins, notes, and bank deposits

• 1. All items of legal tender

• 1. Coins, notes, and bank loans

• 1. Notes and coins 

1. Which of the following is a banknote or deposit money?

• Checks

• Bank loan

• Duty stamp

• Jewelry

What is a debit card used for?

• To transfer money between accounts

• To borrow money from the bank

• To pay things or withdraw money from an ATM

• To write checks

1. The following are important characteristics of good money, except….

• 1. It is durable.

• 1. It is in unlimited supply.

• 1. It is generally accepted.

• 1. It is carried easily.

1. What does the phrase a medium of exchange mean when describing a function of money?

• The price of an item can be measured in terms of money units

• Money is generally accepted means of payment

• 1. You can save money because it keeps its value

• Borrowers know how much they need to pay back on a loan

What does the phrase "a measure of value" mean when describing a function of money?

• 1. The price of an item can be measured in terms of money units

• 1. Money is generally accepted means of payment

• 1. You can save money because it keeps its value

• 1. Borrowers know how much they need to pay back on a loan

1.  What does the phrase "a standard of deferred payment" mean when describing a function of money?

• Price of an item can be measured in terms of money units

• Money is generally accepted means of payment

• You can save money because it keeps its value.

• Borrowers know how much they need to pay back on a loan

  
  

1. What does the phrase "a good store of value" mean when describing a function of money?

• Price of an item can be measured in terms of money units

• Money is generally accepted means of payment

• You can save money because it keeps its value

• Borrowers know how much they need to pay back on a loan

1. The nominal printed on money is called ….

• Intrinsic value

• extrincsic value

• nominal value

• money's value

The material/fabric used to make money is called ....

• fabric value

• nominal value

• intrinsic value

• extrinsic value