BBC 14_QUIZ 1_L1_Basic Concepts of Money

Babylonian priests, knowledgeable about astronomy, taught to people the close relationship between

• Bronze as Stars, and Silver as Sun

• Silver as Moon, and Gold as Sun

• Gold as Sun, and Bronze as Moon

• Silver as Sun, and Gold as Moon

Money, through price mechanism, indicates to producers the type and quantity of goods they should produce.

• 1. Consumption

• 1. Trade

• Production

• 1. Public Finance

_______ is a written or oral agreement that acknowledges an obligation to pay a sum or sums of money on demand, or at any future time or times.

• Credit

  
  

• Credit Instrument

  
  

• Financial Instrument

  
  

• Financial Institution

  
  

At the grocery store last week, you purchased $93.25 worth of groceries. You paid for the groceries in cash.

• 1. Medium of Exchange

• 1. Store of Value

• 1. Unit of Account

• 1. Durability

With this function, we can easily track changes in wealth and compare the prices of goods/services.

• Medium of Exchange

• 1. Portability

• 1. Paper Money

• 1. Unit of Account

The goldsmith, as a guaranty, delivered a receipt. With time, these receipts came to be used to make payments as

• 1. Monetary System

• Paper Money

• Checks

• 1. Copper

Money must be easily divided into small parts so that people can purchase goods and services at any price.

• 1. Perishable

• Durable

• 1. Divisible

• 1. Portable

A good used as money that also has value independent of its use as money.

• 1. Fiat Money

• 1. Checks

• 1. Paper Money

• 1. Commodity Money

It means fair or just.

• 1. Equality

• 1. Anxiety

• Equitability

• 1. Partiality

This means productivity

• Effectivity

• 1. Efficiency

• 1. Creativity

• Effectiveness