Understanding Money and Banking

Front

What did Kyle MacDonald use to trade for a house?

Back

Bartering

Front

According to economists, what is the primary characteristic of money? Options: Divisibility, Acceptability, Scarcity, Durability

Back

Acceptability

Front

What is one of the key functions of money?

Back

Store of value

Front

What characteristic of money allows it to be carried easily?

Back

Portability

Front

Why was salt considered valuable as a form of money in ancient times?

Back

It was scarce.

Front

Which of these is NOT considered part of the M1 money supply? Currency, Checkable deposits, Traveler's checks, Savings account deposits

Back

Savings account deposits

Front

What does fiat money rely on for its value?

Back

The government’s declaration

Front

Which of the following is considered “near money”?
Options:
Credit cards
Currency
Savings account deposits
Checkable deposits

Back

Savings account deposits

Front

Why don’t economists consider a debit card as part of the money supply?

Back

It only accesses funds, not represents them

Front

Which characteristic of money ensures it has a consistent value across all exchanges?

Back

Uniformity