Quiz on Money and Financial Institutions

What is one condition for an item to function as currency?

• It must be rare

• It must be expensive

• It must be durable

• It must be colorful

What is a disadvantage of using commodity money?

• It is easy to carry

• It has a fixed value

• It is difficult to store

• It is widely accepted

What type of money is defined as money in the form of sheets made of paper?

• Digital Money

• Paper Money

• Commodity Money

• Metal Money

Which of the following is NOT a function of money?

• Means of transportation

• Wealth storage

• Means of exchange

• Means of measuring value

What is intrinsic value?

• The value stated on the currency

• The value of the material used to make money

• The purchasing power of money

• The value of money in the market

What is the role of a central bank?

• To manage personal savings

• To maintain price stability

• To issue paper money

• To provide loans to individuals

Which type of bank only accepts deposits in the form of term deposits?

• Investment Bank

• Central Bank

• Commercial Bank

• People's Credit Bank

What is one characteristic of electronic money?

• It is difficult to transfer

• It is a digital form of fiat money

• It can only be used offline

• It is made of metal

What does 'portability' refer to in the context of money?

• The ability to maintain value

• The ability to be carried anywhere

• The ability to be stored easily

• The ability to be divided

Which of the following is a type of value of money?

• Exchange value

• Nominal value

• Trade value

• Market value