2-2 Types of Currency Business U Quiz

What is a banknote?

• A form of money with intrinsic value

• A promissory note and legal tender issued by the government

• An illegal imitation of currency

• A monetary system based on gold

What defines commodity money?

• Money issued by governments

• Money with intrinsic value due to physical properties

• A medium of exchange in an economy

• A digital representation of currency

What is counterfeit?

• A legal form of currency

• A promissory note

• The illegal imitation of currency or documents

• A monetary system based on gold

What is the definition of currency?

• A form of money with intrinsic value

• The official form of money in active circulation within a country

• An illegal imitation of currency

• A monetary system based on gold

What is fiat currency?

• Money backed by gold and silver

• Money issued by governments, not backed by physical commodities

• A form of money with intrinsic value

• An illegal imitation of currency

What does intrinsic value refer to?

• The market price of an item

• The actual, inherent worth of something

• The official form of money in circulation

• A monetary system based on gold

What is legal tender?

• A form of money with intrinsic value

• An aspect of money sanctioned by the government for payment

• An illegal imitation of currency

• A monetary system based on gold

What is the role of money in an economy?

• To serve as a legal document

• To facilitate the buying and selling of goods and services

• To act as an illegal imitation of currency

• To be a monetary system based on gold

What is the gold standard?

• A form of money with intrinsic value

• A monetary system where currency equals a certain quantity of gold

• An illegal imitation of currency

• A digital representation of currency

What are the three critical functions that money must fulfill?

• Medium of exchange, unit of measure, durability

• 
  Medium of exchange, unit of account, means of storage

• Medium of exchange, store of value, unit of measure

• Medium of exchange, store of wealth, unit of measurement