FINMA PART 1

First stage of monetary development.

• Coinage

• Paper money

• Commodity exchange

• Barter system

System of exchange in which goods are swapped for goods, services for services, goods for services and services for goods.

• Coin system

• Credit transaction

• Barter system

• Banking system

Which of the following is NOT a reason for the abandonment of the barter system?

• It lacks generalized purchasing power

• No common measure of value

• It is convenient and fast

• Unequal value of goods

Evolution of money.

• Paper → Coin → Barter → Commodity

• Coin → Barter → Paper → Metal

• Barter → Commodity → Precious Metals → Coins → Paper Money

• Commodity → Paper → Barter → Coins

One of the functions of money.

• Source of inflation

• Store of anger

• Medium of exchange

• Production tool

One way of keeping money for future use.

• Gambling

• Spending

• Saving

• Borrowing

Business (industrial, commercial or service), stocks, bonds, real estate and jewelry are examples of:

• Saving

• Investing

• Hoarding

• Spending

Which is NOT a significance of money?

• Increases savings

• Encourages specialization

• Medium of exchange

• Encourages hoarding

Which is a correct significance of money?

• Medium of exchange

• Causes trade difficulties

• Replaces government spending

• Restricts specialization

Good money should be acceptable to everybody in a specific territory.

• Cognizability

• Durability

• General Acceptability

• Elasticity