NEW
Font size
WorksheetsFunctions of Money
Total questions: 14
Worksheet time: 7mins
What is the primary function of money as a medium of exchange?
To facilitate trade
To serve as a measure of value
To create credit
To store value
Which of the following is a measure of value?
Unit of account
Standard of deferred payments
Medium of exchange
Store of value
What does money enable in terms of deferred payments?
Immediate payments
Barter exchanges
Future payments
Cash transactions
According to Lord J. M. Keynes, what does money link?
Assets and liabilities
Present and future
Commodities and services
Income and expenditures
What is a contingent function of money?
Medium of exchange
Unit of account
Store of value
Measurement of national income
How is national income expressed?
In terms of goods
In terms of assets
In monetary terms
In terms of services
What does money provide a base for?
Tax evasion
Savings accounts
Creation of credit
Barter transactions
What is considered the most liquid asset?
Bonds
Money
Stocks
Real estate
Which of the following is a macroeconomic variable?
National debt
Gross National Product (GNP)
Personal savings
Household income
What is black money?
Taxed income
Government revenue
Untaxed income
Legal income
What does black money encourage?
Legal trade
Transparency
Corruption
Economic growth
What is one tool used to control black money?
Public spending
Subsidies
Demonetization
Tax incentives
What is a standard of deferred payments?
Immediate cash payments
Future payments
Barter agreements
Loan agreements
What does money facilitate in terms of economic transactions?
Asset depreciation
Trade
Bartering
Value transfer
