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Functions & Characteristics of Money

Total questions: 15

Worksheet time: 4hrs 45mins

Name
Class
Date
1.

Which characteristic of money means easily transferred from person to person, to make the exchange of money for products easier?

a)

Durability

b)

Portability

c)

Divisibility

d)

Scarcity

2.

Money has ______ if it can be broken down into smaller units so it can be used as needed.

a)

Divisibility

b)

Portability

c)

Scarcity

d)

Durability

3.

Money has ______ if it doesn't deteriorate when it is being handled frequently.

a)

Scarcity

b)

Divisibility

c)

Durability

d)

Portability

4.

Function of money in which it is accepted and used as payment for goods and services.

a)

Measure of value

b)

Medium of exchange

c)

Scarcity

d)

Store of Value

5.

One of three functions of money allowing people to preserve value for future use.

a)

Store of value

b)

Divisibility

c)

Portability

d)

Measure of value

6.

Central bank of the U.S. created in 1913 that carries out US monetary policy.

a)

Securities & Exchange Commission

b)

Federal Reserve System

c)

Federal Trade Commission

d)

Bureau of Printing & Engraving

7.

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 only coins issued by a government.

c)

Money is legal currency only backed by gold and is printed by banks to satisfy the financial needs of the people.

d)

Money is printed on a mixture of linen & cotton and issued by Congress.

8.

Which of the following IS NOT a type of money?

a)

Commodity money

b)

Trade money

c)

Representative money

d)

Fiat money

9.

Which type of money exists in the United States?

a)

Commodity money

b)

Trade money

c)

Representative money

d)

Fiat money

10.

Which of the following is an example of "near money"?

a)

Debit cards

b)

Savings accounts

c)

Checking accounts

d)

Credit cards

11.

Which type of money has value in and of itself but can be difficult to transport?

a)
Cryptocurrency
b)

Fiat money

c)

Representative money

d)

Commodity money

12.

https://www.uscurrency.gov/about-us/currency-facts

Which two colors are used in the fibers of US currency?

a)

Yellow and blue

b)

Green and red

c)

Blue and red

d)

Yellow and orange

13.

The difference between representative money and fiat money is that

a)

representative money is worth more than fiat money.

b)

fiat money is counted in coins; representative money is counted in paper dollars.

c)

fiat money is more durable than representative money.

d)

representative money is backed by silver or gold, ; fiat money is not.

14.
Currently, what is U.S. money backed by?
a)
Frankincense
b)
Gold
c)
Silver
d)
Trust that it is worth something
15.

What was the $100,000 gold certificate used for?

https://www.uscurrency.gov/about-us/currency-facts

a)

Transactions between consumers and producers

b)

To solve the basic economic problem of scarcity

c)

Transactions between the state governments and retailers

d)

Transactions between the Federal Reserve banks