Ch 15 Financial Literacy Quiz

What is another term for money?

• Currency

• Barter

• Credit

• Debit

What is bartering?

• Exchanging goods or services without using money

• Using coins for transactions

• Paying with a credit card

• Depositing money in a bank

What is a banknote?

• A type of document guaranteeing payment

• A form of digital currency

• A type of coin

• A credit card statement

What is the official currency used for financial exchange in the United States?

• Dollar

• Euro

• Yen

• Pound

Which of the following is NOT a function of money?

• Medium of exchange

• Unit of value

• Store of value

• Bartering

What does the term "store of value" mean in relation to money?

• Money is used in exchange for goods and services.

• Money is a common measure of worth or price.

• Money can be saved and used at a later date.

• Money is a promise to pay interest.

What is the "time value of money"?

• The concept that money today is worth more than the same amount in the future.

• The idea that money can be exchanged for goods and services.

• The principle that money is a common measure of worth.

• The belief that money is a promise to pay interest.

What is one of the key characteristics of money that ensures it can be used confidently in an economy?

• Stable

• Recognized

• Divisible

• Portable

Which characteristic of money allows it to be divided into smaller units?

• Stable

• Recognized

• Divisible

• Durable

Why is it important for money to be recognized?

• To ensure it is durable

• To make it portable

• To be immediately accepted

• To maintain stability