Money and Financial Institutions

Front

What is the primary function of commercial banks?

Back

Facilitating financial transactions

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DOK Level 1: Recall

Front

Which of the following is a function of money? Entertainment, Medium of exchange, Health improvement, Technology development

Back

Medium of exchange

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DOK Level 1: Recall

Front

What type of financial institution primarily focuses on receiving deposits and making loans?

Back

Commercial banks

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DOK Level 1: Recall

Front

Identify the role of money that allows it to be used to save for future expenses: Unit of account, Store of value, Medium of exchange, Standard of deferred payment

Back

Store of value

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DOK Level 1: Recall

Front

How do savings contribute to the economy?

Back

By providing funds for investment

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DOK Level 2: Skill/Concept

Front

Which of the following best describes the role of money as a "unit of account"? Options: Money can be saved for future use. Money allows goods and services to be priced. Money can be exchanged for goods and services. Money can be borrowed to finance large purchases.

Back

Money allows goods and services to be priced.

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DOK Level 2: Skill/Concept

Front

What distinguishes a credit union from a commercial bank?

Back

Credit unions are member-owned institutions.

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DOK Level 2: Skill/Concept

Front

Why is it important for an economy to have a diverse range of financial institutions?

Back

It provides different services and products to meet varied needs.

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DOK Level 2: Skill/Concept

Front

Evaluate how the function of money as a "medium of exchange" impacts economic efficiency.

Back

It decreases transaction costs and increases trade.

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DOK Level 3: Strategic Thinking

Front

Discuss the impact of high savings rates on a country's economic growth.

Back

It may slow down consumption but increase investment resources.

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DOK Level 3: Strategic Thinking