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Money and Banking 1

Total questions: 14

Worksheet time: 13mins

Name
Class
Date
1.

What is the history of money and how has it evolved over time?

a)

Money has evolved from using shells and beads as currency to the use of coins and paper currency

b)

Money evolved from using credit cards to the use of coins and paper currency

c)

Money has always been in the form of digital transactions and has never evolved from bartering and trading goods

d)

Money has evolved from bartering and trading goods to the use of coins, paper currency, and now digital transactions.

2.

Explain the function of money in an economy.

a)

Money is only used for online transactions

b)

Money serves as a medium of exchange, unit of account, store of value, and standard of deferred payment in an economy.

c)

Money is used for decorating homes

d)

Money is used for measuring time

3.

What are some common banking services offered to customers?

a)

Grocery delivery

b)

Car rentals

c)

Pet grooming

d)

Some common banking services offered to customers include savings accounts, checking accounts, loans, credit cards, and online banking.

4.

How is income earned and what are the different sources of income?

a)

Income is earned through winning the lottery and gambling

b)

Income is earned through various sources such as employment, investments, business profits, rental income, and government assistance.

c)

Income is earned through begging and panhandling

d)

Income is earned through stealing and illegal activities

5.

What are the earliest forms of money used in human history?

a)

Cloth, wood, and glass

b)

Plastic, paper, and electronic currency

c)

The earliest forms of money used in human history include commodities such as shells, beads, and livestock, as well as precious metals like gold and silver.

d)

Stones, leaves, and feathers

6.

How does money facilitate trade and exchange of goods and services?

a)

Money is only used for paying taxes

b)

Money serves as a medium of exchange, allowing people to easily trade goods and services without the need for bartering.

c)

Money is only used for buying luxury items

d)

Money is used for building houses and infrastructure

7.

Explain the concept of savings accounts and their benefits.

a)

Savings accounts are a type of bank account where individuals can deposit their money and earn interest on the balance. The benefits include earning interest, keeping money safe, and having easy access to funds when needed.

b)

Savings accounts are a type of investment account where individuals can invest in stocks and bonds to grow their money.

c)

The benefits of savings accounts include losing money, having limited access to funds, and not earning any interest.

d)

Savings accounts are a type of bank account where individuals can borrow money and pay interest on the balance.

8.

_____________ is another word for trading.

a)

Service

b)

Bartering

c)

Charities

d)

Good

9.
Which of the following was never used as currency?
a)
Beads
b)
Bananas
c)
Salt
d)
Gold
10.

The fee charged for the right to borrow money

a)

deposit

b)

withdraw

c)

interest

d)

loan

11.

Paying a bank to let you borrow money

a)

loan

b)

interest

c)

inflation

d)

reserve

12.

Money spent in order to make more money

a)

income

b)

interest

c)

investment

d)

entrepreneur

13.

What is a loan?

a)

A fee for maintaining or servicing your loan account

b)

Money you borrow but must also repay

c)

Something valuable that you own and can sell for cash

d)

The cost of borrowing money

14.

Currency should be portable. This means:

a)

You can carry it easily.

b)

It was originally designed in a port.

c)

It is either rectangular or circular.

d)

It is made out of paper.