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WorksheetsWhy Money?
Total questions: 12
Worksheet time: 6mins
Name
Class
Date
1.
A surplus is...
a)
supply > demand
b)
demand > supply
c)
demand = supply
2.
Anything traded broadly for goods & services in an economy.
a)
Medium of exchange
b)
Purchasing power
c)
Bartering
d)
Commodity
3.
Which is NOT a characteristic of money?
a)
Uniform
b)
Scarce
c)
Divisible
d)
Desctructable
4.
An item that has value in and of itself.
a)
commodity
b)
fiat
c)
barter
d)
durable
5.
Which is an example of a common form commodity money?
a)
gold
b)
cattle
c)
chicken
d)
corn
6.
Representative money is valuable by itself.
a)
True
b)
False
7.
Representative money is redeemable for a certain amount of a...
a)
scarcity
b)
value
c)
fiat
d)
commodity
8.
A limitation of commodity money is...
a)
prices fluctuate constantly
b)
prices are consistent
c)
redeemable for another commodity
d)
has no value itself
9.
The value of fiat currency comes from acceptance as money.
a)
true
b)
false
10.
Fiat currency, disadvantage:
a)
Supply of $ can increase or decrease to meet demand for $
b)
Value of $ can increase or decrease too quickly
11.
Fiat currency requires...
a)
a central bank
b)
inflation
c)
recession
d)
commodities
12.
Banks provide businesses & households with...
a)
loans & interest on savings
b)
loans & savings
c)
savings & taxes
d)
private goods & savings
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