WorksheetsMoney and Monetary Policy
Total questions: 11
Worksheet time: 7mins
Name
Class
Date
1.
This term refers to the ease with which you can convert an asset to cash with little or no loss of purchasing power.
a)
legal tender
b)
acceptability
c)
liquidity
d)
uniformity
2.
This classification of money includes coins, paper money, checkable deposits.
a)
M1
b)
M2
c)
M3
3.
This characteristic of money refers to the ability to carry it with you---lightweight and easy to transport.
a)
portability
b)
uniformity
c)
acceptability
d)
stability
4.
This function of money allows people to transfer purchasing power from the present to the future.
a)
medium of exchange
b)
unit of account
c)
store of value
d)
liquidity
5.
Our current money is _______ money. Meaning that it has value because the government has ordered that it is an acceptable means to pay debts.
a)
Commodity
b)
Fiat
c)
Representative
d)
Funny
6.
Anna recently celebrated her 18th birthday. in many of her birthday cards, she found slips of paper from the US government promising to repay a loan at a fixed interest rate. These slips of paper are known as
a)
stocks
b)
bank loans
c)
shares
d)
bonds
7.
A stock is
a)
a claim of ownership in a business
b)
a certificate of independence
c)
traded in a closed market system
d)
all the above
8.
The is the price, calculated as a percentage, of the amount borrowed, charged by lenders to borrowers for the use of their savings for one year.
a)
Interest Rate
b)
Savings Rate
c)
Borrow Rate
d)
Percentage Rate
9.
A _________ is a requirement to pay money in the future.
a)
Liability
b)
Financial Risk
c)
Diversification
d)
Default
10.
The exchange of goods and services without using money is known as...
a)
near money.
b)
bartering.
c)
double coincidence of wants.
d)
fiat money.
11.
Fiat money is
a)
money is checking accounts.
b)
money that has intrinsic value on its own.
c)
specially created from the Federal Reserve.
d)
money that is only valuable because the government says it is.
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