Money - Definition, Uses, Properties and Characteristics Quiz

What is the primary function of money?

• To be a standard of deferred payment

• To be a store of value

• To be a measure of value

• To be a medium of exchange

Which of the following is NOT a property that money must meet?

• Inflammability

• Durability

• Fungibility

• Portability

What does fungibility refer to in the context of money?

• The ability to be recognized easily

• The ability to be interchangeable with other units

• The ability to withstand repeated usage

• The ability to be easily carried

Which of the following is an example of a medium of exchange?

• A diamond

• A banknote

• A piece of art

• A car

What is required for a currency to be recognized as money?

• It must be made of precious metals

• It must be backed by gold

• It must be declared as legal tender by the government

• It must be used internationally

Which function of money allows it to be used in future transactions?

• Medium of exchange

• Store of value

• Standard of deferred payment

• Measure of value

What does the property of durability ensure about money?

• It can be easily divided

• It can be exchanged for goods

• It can be easily recognized

• It can be used repeatedly without degrading

Which of the following is a function of money?

• To be a form of entertainment

• To be a tool for negotiation

• To be a measure of value

• To be a source of income

What is the role of money as a standard of deferred payment?

• To allow for the settlement of debts at a future date

• To store wealth over time

• To facilitate immediate transactions

• To measure the value of goods

Why is portability an important property of money?

• It ensures money can be easily recognized

• It ensures money can be easily carried and used

• It ensures money can be easily stored

• It ensures money can be easily divided