WorksheetsEcon Quiz 10.1-10.3
Total questions: 23
Worksheet time: 12mins
"Objects that have value because the holder can exchange them for something else of value" defines
fiat money.
commodity money.
representative money.
portability.
Money that has value because the government has ordered that it is an acceptable means to pay debts is referred to as
fiat money.
commodity money.
representative money.
uniformity.
Which of the following is an example of money as a store of value?
comparing the costs of two vacations
appraising a wedding ring
making money at a garage sale and saving it
researching car prices online
Barter is
a means for comparing the values of goods and services.
the direct exchange of one set of goods or services for another.
anything that serves as a medium of exchange, a unit of account, and a store of value.
something that keeps its value if it is stored rather than used.
For a traveler, paper currency would be preferable to coins because of
limited supply.
acceptability.
uniformity.
portability.
Anything that is used to determine value during the exchange of goods and services is a
unit of account.
barter.
store of value.
medium of exchange.
"Objects that have value in themselves and that are also used as money" is the definition for
fiat money.
commodity money.
representative money.
money.
Which of these currencies became worthless by the end of the Civil War?
greenbacks
demand notes
Confederate currency
Union currency
A banker exchanges bank notes for silver and gold money then leaves town and disappears. This is a
fraud.
wildcat.
bank run.
greenback.
The central banking system for the United States that was set up in 1913 is known as the
central bank system.
member bank system.
national bank system.
Federal Reserve System.
The government agency that covers customer deposits if a bank fails is the
Federal Reserve System.
central bank.
member bank.
Federal Deposit Insurance Corporation (FDIC).
What is the name for a monetary system in which paper money and coins are equal to the value of a certain amount of gold?
Federal Reserve note
Federal Reserve System
greenback
gold standard
Which of the following is an example of an informal bank?
A bank that is not incorporated.
A bank that is not a member of a central bank.
A merchant who stores money for customers.
An individual who loans money to friends.
The Antifederalist movement, which supported a decentralized banking system, was led by
Alexander Hamilton.
Thomas Jefferson.
Aaron Burr.
Andrew Jackson.
"Default" refers to the
ability to be used as, or directly converted to, cash.
amount of money borrowed.
failure to pay back a loan.
price paid for the use of borrowed money.
What is the simple interest of a loan for $1,000 with 5% interest after 3 years?
$50
$150
$1,050
$1,150
"Principal" is the
ability to be used as, or directly converted to, cash.
amount of money borrowed.
failure to pay back a loan.
price paid for the use of borrowed money.
The ability to be used as, or directly converted to, cash is
default.
the money supply.
liquidity.
interest.
The price paid for the use of borrowed money is referred to as the
liquidity.
default.
principal.
interest.
Which of the following does NOT belong in the M2 category?
money market mutual funds
near money
currency held in bank vaults
deposits in savings
The fractional banking system
only works if there are a limited number of banks.
ensures growth in the economy.
makes banking more secure.
prevents excessive defaults.
Which one of the following is NOT one of the four most common ways people can save money in banks?
checking accounts
money market accounts
certificates of deposit
fractional reserves
I certify, on penalty of receiving zero credit for this course, that in completing this test, l have done so honestly without the help of others or resources not agreed to by my teacher.
Yes
No
