Title: What is Money?
Course: TEST Course

Q: Which of the following descriptions is excluded from being a function of money?
- medium of exchange, standard of deferred payment
- store of value, unit of account
- price level, measurement of wealth, unit of scale
A: price level, measurement of wealth, unit of scale

Q: What serves as a medium of exchange, and is widely accepted as a means of payment?
- manufacturer coupons
- debt
- money
A: money

Q: ________ is defined as goods are exchanged directly for other goods.
- Currency
- Commodity
- Barter
A: Barter

Q: Because money functions as a ________ it eliminates the need for bartering.
- double coincidence of wants
- store of value
- medium of exchange
A: medium of exchange

Q: Which of the following does NOT qualify as "money"?
- commodity money
- fiat money
- barter exchange
A: barter exchange

Q: Under certain conditions, goats, coins, and checks can all be used as payments. In economic terms these things are all considered ________.
- money
- terms of trade
- a medium of exchange
A: a medium of exchange

Q: Around the world oil is priced consistently in United States dollars. In economic terms this is an example of:
- store of value.
- flexible values.
- units of account.
A: units of account.

Q: All over the globe commodities (e.g. corn, wheat, beans) are priced in United States dollars. This in economic terms, is an example of
- store of value.
- flexible values.
- units of account.
A: units of account.

Q: Of the following descriptions, which characteristic is a true statement about money?
- A government must back it.
- Generally it doesn’t have to be accepted as a means of payment.
- It must represent value.
A: It must represent value.

Q: Which of the following characteristics is true of money?
- it must be backed by the government.
- it does not generally need to be accepted as a means of payment.
- It must represent value.
A: It must represent value.

Q: Money that has no significant non-monetary value is called
- commodity money.
- intrinsic value money.
- fiat money.
A: fiat money.

Q: What is money called if it has no significant non-monetary value?
- commodity money
- intrinsic value money
- fiat money
A: fiat money

Q: Which of the following is an example of what backs fiat money?
- precious metals such as silver
- bartering arrangements
- trust the public has that it can be exchanged for services and goods
A: trust the public has that it can be exchanged for services and goods

Q: Fiat money is backed by
- precious metals such as gold.
- bartering arrangements.
- the public’s trust that it can be exchanged for goods and services.
A: the public’s trust that it can be exchanged for goods and services.

Q: Silver and gold are examples of what kind of money?
- fiat
- M2
- commodity
A: commodity

Q: A historical example of ________ is when communities used cocoa beans or cowrie shells as a kind of money.
- fiat money
- M3
- commodity money
A: commodity money

Q: Cigarettes can be used as a form of ________.
- fiat money
- fake money
- barter
A: barter

Q: Homemade pies can be used as a form of ________.
- fiat money
- commodity-backed currency
- barter
A: barter

Q: Which source of money is most liquid, or available for consumers to use?
- M2
- Certificates of deposit
- M1
A: M1

Q: The most liquid source of money is ________.
- M2
- Certificates of deposit
- M1
A: M1

Q: The M2 money supply consists of everything in the M1 money supply, savings deposits and which of the following?
- long term debt
- personal checks
- certificates of deposit
A: certificates of deposit

Q: The M2 measure of the money supply is defined as currency
- plus savings accounts and other timed deposits, CDs and money market funds, and is smaller in sum than M1.
- minus savings accounts and other timed deposits, CDs and money market funds, and is larger in sum than M1.
- plus savings accounts and other timed deposits, CDs and money market funds, and is larger in sum than M1.
A: plus savings accounts and other timed deposits, CDs and money market funds, and is larger in sum than M1.

Q: The ease with which an asset can be used to buy a good or service is the asset’s
- exchange rate.
- money supply.
- liquidity.
A: liquidity.

Q: The definition of ________ is the ease with which an asset can be used to buy a service or a good.
- exchange rate
- money supply
- liquidity
A: liquidity

Q: M1, the narrowest of the Fed's money supply definitions include(s)
- savings deposits.
- money market funds.
- currency in circulation.
A: currency in circulation.

Q: The most limited definition of the Fed's money supply, M1, exclude(s)
- currency in circulation.
- checkable deposits (also called demand deposits).
- savings deposits.
A: savings deposits.

Q: The M2 measure of money include(s)
- debit cards.
- credit cards.
- money market funds.
A: money market funds.

Q: Which is an example of M2 money?
- debit cards.
- credit cards.
- certificates of deposit.
A: certificates of deposit.

Q: Which of the following are types of debt?
- futures
- insurance payments
- credit cards
A: credit cards

Q: Of the examples below, which is an example of debt?
- debit card
- amazon gift card
- student loan
A: student loan

Q: If you purchase a good or service with credit it means that
- money is directly drawn from your bank account.
- it would be better for you to wait and purchase the good or service with money.
- your total debt is increasing.
A: your total debt is increasing.

Q: Making a purchase with credit means
- you are taking money out of your bank account.
- you are always better off waiting until you have the money.
- you are adding to your debt.
A: you are adding to your debt.

Q: Debit cards are a form of
- debt.
- credit.
- money.
A: money.

Q: If a debit card is used for a purchase it is like using
- debt.
- credit.
- cash.
A: cash.

Q: Credit is
- a way to purchase items smaller amounts over a long period of time.
- a way to purchase goods using a debit card.
- a tool for buying things you cannot afford to pay for all at once.
A: a tool for buying things you cannot afford to pay for all at once.

Q: What is the definition of credit?
- Credit is a means of purchasing items in smaller sums over a longer period of time.
- Credit is a means of purchasing services using a debit card.
- Credit is a way to purchase goods or services now when you cannot afford to pay for it all at once with cash.
A: Credit is a way to purchase goods or services now when you cannot afford to pay for it all at once with cash.