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WorksheetsQuiz on Money and Its Functions
Total questions: 15
Worksheet time: 8mins
What is money primarily used for?
A method of communication
A type of investment
A form of entertainment
A medium of exchange
What was the primary limitation of barter?
Lack of variety in goods
Need for a double coincidence of wants
High transaction costs
Limited geographical reach
Which of the following is an example of commodity money?
Digital wallets
Bank deposits
Gold
Paper currency
What type of money is backed by the government as legal tender?
Commodity money
Cryptocurrency
Fiat money
Bank money
Which function of money allows individuals to save and defer spending?
Standard of deferred payment
Store of value
Unit of account
Medium of exchange
What characteristic of money ensures it can be easily carried?
Uniformity
Divisibility
Portability
Durability
Which of the following is NOT a characteristic of money?
Durability
Portability
Scarcity
Divisibility
What is the primary purpose of a unit of account?
To measure value
To facilitate transactions
To store value
To settle debts
Which of the following is an ICT-aided payment instrument?
Credit cards
Paper currency
Gold coins
Cattle
What does the term 'limited supply' refer to in the context of money?
Money must be easily divisible
Money must be portable
Money must be durable
Money must be available in limited quantities
What is an example of bank money?
Gold
Cryptocurrency
Paper currency
Bank deposits
Which of the following is a function of money?
To facilitate trade
To increase debt
To create wealth
To provide entertainment
What is the significance of uniformity in money?
It must retain value over time
It must be easy to carry
It must be widely accepted
All units must be identical
Which of the following is NOT a type of money?
Barter
Commodity money
Fiat money
Digital currency
What does 'store of value' mean in relation to money?
It is easy to carry
It can be used to buy goods immediately
It retains value over time
It is accepted everywhere
