Currency & Trade

Front

What is Fiat Money?

Back

Fiat Money is money without intrinsic value, meaning it has no physical commodity backing it.

Front

What system has replaced the Barter system?

Back

The Monetary system has replaced the Barter system.

Front

If $1.00 is equal to 530.70 Armenian Drams, how many drams can you get with a $20 bill?

Back

10,614 drams.

Front

What type of money is paper currency an example of?

Back

Paper currency is an example of fiat money.

Front

How much money does Kelsey need to exchange for 100 euros if the rate is $1 for 0.88 euros?

Back

Kelsey needs to give the bank $113.64.

Front

What is the definition of Barter System?

Back

The Barter System is a method of exchange where goods and services are traded directly for other goods and services without using money.

Front

What is Commodity Money?

Back

Commodity Money is a type of money that is made up of a commodity with intrinsic value, such as gold or silver.

Front

What is the role of a Bank in currency exchange?

Back

A Bank facilitates the conversion of one currency to another, often charging a fee for the service.

Front

What does 'Exchange Rate' mean?

Back

Exchange Rate is the value of one currency for the purpose of conversion to another.

Front

What is the difference between Fiat Money and Commodity Money?

Back

Fiat Money has no intrinsic value and is not backed by physical commodities, while Commodity Money has intrinsic value and is backed by a physical commodity.