Types of Currency

You are on a trip to Germany. You swap your dollars for Euros. Why exchange currency while you are there?

• To buy or sell goods in Germany; they won't take dollars.

• Because dollars are worth the same as other currency

• Because Euros are a great souvenir.

a system of money

• debt

• currency

• diverse

• precedent

A type of money that is backed by a material, such as gold, is referred to as

• certificate money

• representative money

• fiat money

• commodity money

What type of currency is the US dollar?

• Fiat currency

• Commodity Currency

• Commodity Backed Currency

• Complete Currency

What is the primary function of currency in an economy?

• Medium of exchange

• Store of value

• Unit of account

• All of the above

Which of the following is an example of a digital currency?

• Bitcoin

• Gold

• Silver

• Barter

What type of currency is backed by a physical commodity such as gold or silver?

• Fiat currency

• Cryptocurrency

• Commodity currency

• Digital currency

Which currency is known as the 'world's reserve currency'?

• Euro

• Japanese Yen

• British Pound

• US Dollar

What is the term for currency that is not backed by a physical commodity?

• Fiat currency

• Commodity currency

• Cryptocurrency

• Barter

Which of the following is a characteristic of fiat currency?

• Backed by gold

• Issued by government

• Decentralized

• Used in barter