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functions of money

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

A student records her income and spending for past month, she uses the function of money

a)

Medium of exchange

b)

Standard of deferred payments

c)

Unit of account

d)

Store of value

2.

A saving account in a bank represents the function of money:

a)

Store of value

b)

A medium of exchange

c)

A standard for deferred payments

d)

A measure of value

3.

Choose the most accurate definition of "money".

a)

Money is anything generally accepted in payment for goods or services or in the repayment of debts.

b)

Money is anything recognized in trading and transaction for goods.

c)

Money is legal currency that is released by banks to satisfy the financial needs of the people.

4.

Which of the following is not a medium of exchange?

a)

Easily standardized

b)

Divisible

c)

Quickly become less valuable

d)

Widely rejected

5.

The primary function of money is

a)

the store of value function

b)

the medium of exchange function.

c)

the unit of account function

d)

the savings function.

6.

For which function, money is accepted as a unit of account?

a)

Measure of value,

b)

Medium of exchange

c)

Standard of deferred payment

d)

Store of value

7.

A medium of exchange is_______

a)

something that is generally acceptable in exchange for goods and services

b)

a legally recognized asset that is generally accepted in exchange for goods and services.

c)

something that circulates and provides a standardized means of evaluating the relative price of goods and services.

d)

The ability of money to command purchasing power in the future

8.

Money serves as a unit of account. This means that________

a)

money is a common measure of value

b)

money is a means of calculating relative prices of goods and services.

c)

money is the value in exchange of all goods and services

d)

all of these