WorksheetsEcon 4Q1W Money Function
Total questions: 15
Worksheet time: 28mins
Medium of exchange, store of value, and measure of value are all…
Characteristics of money
Functions of money
Types of money
Measures of money
The definition of Commodity Money can best be described as…
Paper money distributed by the U.S. government
Object that has intrinsic value in itself that also serves as money
Money in the form of cash and coin
Printed money from State banks
1. In bartering economies, people trade what they __________ for what they ___________.
Own; buy
Buy; sell
Want; need
Have; need
Money that has value simply because the government says it does is called--
Credit
Currency
Fiat money
Representative money
One of the disadvantages of operating a barter system is that trading is
taking place without currency.
carried out in very large markets.
limited by availability and demand of goods traded.
conducted without consumer protections.
Commodity money can best be described as
trade goods or services between two people without the exchange of money.
a form of money which has an intrinsic value because it is precious like gold and silver.
currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value.
money that consists of goods traded like food and cars.
One advantage to using a debit card is that it allows the user to
build a strong credit score
repay credit card debts faster
purchase goods without having any money
access currency without carrying cash
Which of the following is NOT an example of Fiat money?
U.S. government announces it will now accept bottle caps as currency
Cavemen trade stone tools for cows
Dollar bills and coins we currently use
Early state bank dollar bills
Specie is coin minted from gold and silver.
True
False
For currency to be used effectively, it is best if it portable, durable, and ________________.
Used as a store of value
Backed by gold or silver
Used as commodity money
Acceptable in exchange for goods and services
Out of the following characteristics, money must be effective. Which one directly affects its value?
Durability
Limited supply
Uniformity
Portability
Liquidity can best be described as...
Requiring prior authorization from bank to access funds
Easiest exchange of cash and goods and services
M2 measure of money
Foreign Deposits
As a measure of money, which of the following is NOT included in M2?
Foreign Deposits
Stocks and Bonds
Traveler’s Checks
Demand Deposit Accounts
The economy is in recession. The FED decides to change to increase the money supply through…
Monetary policy
Fiscal policy
Domestic policy
Foreign policy
The economy is in recession. The government decides to change to increase the money supply through…
Monetary policy
Fiscal policy
Domestic policy
Foreign policy
