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WorksheetsFunctions of Money
Total questions: 15
Worksheet time: 11mins
A student records her income and spending for past month, she uses the function of money
Medium of exchange
Standard of deferred payments
Unit of account
Store of value
A saving account in a bank represents the function of money:
Store of value
A medium of exchange
A standard for deferred payments
A measure of value
Choose the most accurate definition of "money".
Money is anything generally accepted in payment for goods or services or in the repayment of debts.
Money is anything recognized in trading and transaction for goods.
Money is legal currency that is released by banks to satisfy the financial needs of the people.
For which function, money is accepted as a unit of account?
Measure of value,
Medium of exchange
Standard of deferred payment
Store of value
Money serves as a unit of account. This means that________
money is a common measure of value
money is a means of calculating relative prices of goods and services.
money is the value in exchange of all goods and services
all of these
What are the functions of money?
Unit of account
Store of Value
Medium of Exchange
Store of Bank Notes
Measure of Value
Which of the following statements explain why a barter system restricts exchange?
There must be a coincidence of wants
It is difficult to divide certain commodities
The commodities used are not homogeneous
A rate of exchange must be determined
Which of the function is NOT a function of money?
Indivisibility
Measure of value
Store of value
Medium of exchange
Barter is BEST described as the
Purchase of goods and services using cheques
Exchange of goods and services using notes and coins
Process of exchange involving the use of money
exchange of goods and services without the use of money
Cows and cattle are type of _____________ money.
Commodity
Animal
Paper
Bank
Examples of Commodity money are_________.
Bows
Arrow
Coins
Notes
Shells
Commodity money was changed into metallic money because___________
Goods cannot be stored for longer period
Goods are not divisible
Goods lack uniformity
Bank money is secure because:
It can be transported easily
No element of risk
Bank money is in a finite amount
Cheques can be written for exact amount
Currency notes & coins are ___________
Legal Tender Money
Fiat Money
Animal Money
Commodity Money
_____________ is a fundamental function of money.
Medium of Exchange
Store of Value
Measure of Value
