SOL CE.13f The role of government currency

What is one reason people accept U.S. money in exchange for goods and services?

• It is backed by gold and silver
• It is colorful and easy to carry
• They have confidence in the government
• Everyone must use only cash

Which of the following is a function of money?

• A way to create new goods
• A method of production
• A medium of exchange
• A tool for building businesses

Which type of money includes paper bills like one-dollar or twenty-dollar bills?

• Coins
• Currency
• Deposits
• Credit

How does money act as a measure of value?

• It is the only way to pay taxes
• It allows people to avoid trade
• It helps compare the worth of goods and services
• It stores wealth for banks only

What role does the U.S. government play in the money economy?

• It creates stores and sets all prices
• It issues and controls currency
• It produces all credit and debit cards
• It decides who can trade

What is the purpose of using money instead of bartering?

• It makes goods more expensive
• It reduces the need for banks
• It simplifies trade and saves time
• It increases the number of producers

What are bank deposits that can be accessed with a debit card an example of?

• Currency
• Coins
• Savings
• Money

Which of the following best describes "store of value"?

• A location where goods are stored
• Money can be saved and used later
• A place to buy money
• A method of comparing prices

What is one benefit of a money economy?

• It requires more trading partners
• It slows down production
• It helps people trade and invest more easily
• It makes borrowing illegal

Why is confidence in the government important for a money economy to work?

• So people do not use digital money
• So people trust and accept the currency
• So bartering is encouraged
• So people stop saving