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Worksheetsmoney and banking
Total questions: 20
Worksheet time: 19mins
What is used to measure inflation?
a ruler
CPI Consumer Price Index
a scale
What type of money would this be?
Commodity
Fiat
Representitive
Gold
The loan a bank gives you to purchase a house is called a...
Mortgage
Default Loan
Equity Loan
Building Loan
Which is not a Characteristic of Money?
Durability
Portability
Divisibility
Invincibility
Money is a generally acceptable medium of
(a)
Any good use as money must be hard wearing. This characteristics is called
(a)
The centre of the banking systems in most economies is the
(a)
When people or groups purchase items with the thought that the value will increase, items like oil or gold, what type of value is this describing?
speculative value
intrinsic value
subjective value
objective value
Which of these are functions of money?
medium of exchange that allows the trade of goods and services
holds value over time
standard of value that allows comparison of the value of goods related to one another
used as the only means of trade between nations
Commodity money can be best described as money that is
backed up by a valuable material
valuable based on the material that the money is made from
used to purchase valuable materials
valuable because a government says it is and people accept that it is valuable
_____________ is a bank that can lend money to other banks in times of crisis
Congress
Central Bank
Department of the Interior
National Bank
_____________ is money by government decree, has no alternative value
Gold standard
Specie
Barter
Fiat money
__________ is a currency that must be accepted for payment by decree of government
Barter
Fiat
Legal tender
Specie
What are M1 and M2?
fiat money
specie
currency
money supplies
You can easily carry money in a pocket or a purse. This reflects what characteristic of money?
durability
legal tender
divisibility
portability
Most banks are established
by local governments
to be credit unions
as corporations
to fulfill reserve requirements
What do you mean by credit creation by commercial banks
process of creation of foreign exchange
process of loan creation
process of total withdrawal creation
process of total deposit creation
Coins and paper that are used as money; 'legal tender'.
Money
Transfer Payments
Currency
Liquidity
True or False: An increase in the Money Supply decreases interest rates, which increases consumption & investment, which increases aggregate demand.
True
False
