SS2 ECONOMICS CBE

Which of the following is not a function of money?

• Medium of exchange

• Store of value

• Means of production

• Unit of account

Money helps in facilitating trade by acting as a:

• Factor of production

• Legal tender

• Medium of exchange

• Economic resource

The demand for money is influenced by:

• Exchange rate

• Government expenditure

• Interest rate

• Terms of trade

The supply of money in an economy is determined mainly by the:

• Consumer demand

• Price of commodities

• Central bank

• Labour force

The main function of a financial institution is to:

• Build roads

• Manufacture products

• Provide financial services

• Regulate school curriculum

An example of a financial institution is a:

• Hospital

• Supermarket

• Commercial bank

• University

The money market deals in:

• Long-term securities

• Capital equipment

• Short-term funds

• Real estate

Which of the following is an instrument of the money market?

• Shares

• Bonds

• Treasury bills

• Mortgages

The capital market is used for:

• Buying consumer goods

• Government spending

• Raising long-term funds

• Collecting taxes

An example of a capital market instrument is:

• Treasury bill

• Certificate of deposit

• Company shares

• Bank deposit