Money and Its Functions Quiz

What is the main function of money as described in the text?

• A medium of exchange

• A measure of value

• A store of value

• A standard of deferred payment

Which quality of money ensures that it must be hard wearing?

• Divisibility

• Acceptable

• Portability

• Durability

What does money serve as when it can be used to state prices for goods?

• A standard of deferred payment

• A medium of exchange

• A measure of value

• A store of value

Which quality of money ensures that it must be convenient to carry?

• Divisibility

• Portability

• Acceptable

• Durability

When money can be saved, it is serving as a:

• A standard of deferred payment

• A medium of exchange

• A store of value

• A measure of value

Which quality of money ensures that it must be possible to divide into smaller units if necessary?

• Divisibility

• Durability

• Acceptable

• Portability

What function of money allows it to be earned at one time and spent in future payments?

• A medium of exchange

• A measure of value

• A store of value

• A standard of deferred payment

Which quality of money ensures that people must agree to its use?

• Portability

• Divisibility

• Durability

• Acceptable

Money makes the exchange of goods easier and barter unnecessary. This function of money is known as:

• A medium of exchange

• A measure of value

• A store of value

• A standard of deferred payment

Which quality of money ensures that it must be hard wearing?

• Durability

• Portability

• Divisibility

• Acceptable