WorksheetsFinLit Unit 1 Quiz Review
Total questions: 18
Worksheet time: 9mins
What is a Medium of Exchange?
A tool used to determine the price of a good or service
Something used as a payment method
Something used to manufacture coins
A place where people exchange money for gold
What is Commodity Money?
Something used as money that also has inherent value
Something that has no inherent value
A trade good that is made out of gold
A service provided as a form of barter
What is Fiat Money?
Something used as money that has no inherent value
Something used as money because it has an inherent value
Coins made of precious metals
Counterfeit money
Which precious metal would have the most value?
Gold
Zinc
Copper
Nickel
What is Representative Money?
Something that is used as money, but has no intrinsic value
Something intrinsically valuable that is used as money
Precious metals, such as gold and silver
Base metals, such as zinc and copper
Why was Gold used to mint coins?
Gold has value based on its weight
Gold is hard to break
Gold is very common and easy to find
Gold had no intrinsic value
What is the Federal Reserve?
A place where a nation stores its gold reserves
A place were gold coins are made
The first kingdom on earth to mint gold coins
The place where dollar bills are printed
What is a Banknote?
A type of representative money printed by the government
A receipt from a store
A coin made of base metals
A record of your bank
What is Inflation?
When money loses its buying power
When money gains more buying power
When there is less gold to make coins
When the reserve runs out of gold
What is Deflation?
When money loses its buying power
When money gains more buying power
When there is less gold to make coins
When the reserve runs out of gold
What is the Gold Standard?
When the value of money is connected to gold
When coins are made of a mixture of gold and zinc
When the government prints money that has no value
When money loses its value
Why do you want a small amount of inflation in an economy?
Some inflation helps the economy grow
Some inflation keeps money rare
You don't want any inflation
Some inflation keeps people from spending their money carelessly
Who issues Representative Money?
Banks and Financial Institutions
Governments
Merchants
Stores and Markets
Why do we use a Medium of Exchange?
It is easier to use money than to barter all the time
Money has more value than goods
A Medium of Exchange is always protected by the government
Carrying around money is much easier
Who used the first paper money?
China
Japan
Korea
Vietnam
What nation used the first metal coins?
The Kingdom of Lydia
Ancient Greece
Ancient Egypt
The Roman Empire
Which of the following would NOT be considered Commodity Money?
Dollar Bills
Rice or Grain
Seashells
Animal Fur
Which of the following is NOT representative money?
Credit Card
Cheque
Electronic Payment
Silver Dollar Coin
