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WorksheetsFunctions and Value of Money Quiz RS
Total questions: 9
Worksheet time: 5mins
Which is NOT a function of money?
Unit of account
Means of exchange
Store of value
Source of income
Money as a ‘unit of account’ means…
It is legally recognised as payment
It places a uniform value on goods & services
It can be saved for the future
It allows people to trade
What does the term hyperinflation mean?
a small steady increase in prices each year
when prices fall over time
Prices rise extremely fast and money loses value quickly
When does money fail as a store of value?
During stable economic growth
In times of hyperinflation
When unemployment falls
When productivity rises
Why might people prefer gold or foreign currencies instead of their own money?
To avoid paying taxes
Because they lose trust in their currency
Because they are always cheaper
Because domestic money isn’t legal
Which policy can make money lose value even in a savings account?
High interest rates
Currency devaluation
Negative interest rates
Trade surpluses
If you save £100 today and spend it next month, money is acting as a:
store of value
unit of account
way to avoid taxes
When you use coins to buy a bus ticket, which function of money is this?
means of production
unit of account
medium of exchange
Which statement best describes the role of money as a store of value?
money always increases in value
money allows value to be saved and used in the future
money can only be spent immediately
money is useful for going to the store
