Chp. 12_Money and Financial Institutions"

Which best describes the difference between bartering and the monetary system?

• Bartering does not work in undeveloped countries, but the monetary system does.

• Monetary means trading money for money, bartering means trading goods for goods

• Bartering is never used in developed countries, and only rarely in undeveloped countries.

• Bartering means trading goods for other goods instead of using money as a standard of value.

Which is NOT considered money?

• coins

• services

• checks

• currency

What happens if money is stable?

• It loses acceptance with most people.

• Its value fluctuates.

• Its value remains unchanged.

• It loses its value.

What is a financial institution?

• a record of the amount of money

• a firm that manages money

• a medium of exchange

• a bank account

Which is best for storing money for a few days?

• checking accounts

• savings accounts

• electronic funds transfers

• direct deposits

How do banks make most of their money?

• transferring money

• collecting collateral

• interest from loans

• fees from checking accounts

Which is NOT a type of bank loan?

• mortgage

• commercial loan

• line of credit

• safe-deposit box

Which is another term for full-service bank?

• commercial bank

• savings and loans association

• credit union

• international bank

Which would be considered "digital cash"?

• a bartered service

• a credit card

• coins

• dollars

Which types of investments are savings and loan associations known for?

• mortgages

• commercial loans

• lines of credit

• personal loans