Chapter 12 - Money & Banking

Front

This characteristic of all forms of money has to do with notes and coins being able to last for an extended length of time in circulation.

Back

durability

Front

This characteristic of all forms of money has to do with the idea that the supply of money must be limited otherwise inflation will occur.

Back

scarcity

Front

This characteristic of all forms of money has to do with price controls and that the value of money cannot fluctuate wildly.

Back

stability

Front

This characteristic of all forms of money has to do with the idea that people and institutions will take money as a form of payment.

Back

acceptable

Front

This characteristic of all forms of money has to do with creating notes and coins that cannot be easily copied.

Back

difficult to counterfeit

Front

This characteristic of all forms of money has to do with the idea that currency must be easy to carry around and transport.

Back

portable

Front

Which of the following Functions of Money has to do with the ability to indirectly obtain goods and services? Options: Medium of Exchange, Store of Value, Standard of Value, Medium of Value

Back

Medium of Exchange

Front

Which of the following Functions of Money has to do with the ability to evaluate the worth of something based on a price? Options: Medium of Exchange, Store of Value, Standard of Value, Medium of Value

Back

Standard of Value

Front

Which of the following Functions of Money has to do with the idea that wealth can be accumulated over time and will last: Medium of Exchange, Store of Value, Standard of Value, Medium of Value?

Back

Store of Value

Front

Which type of interest is typically used when a customer borrows money?

Back

Simple