Monetary Concepts Quiz

Which of the following best describes commodity money?

• Money with no intrinsic value, used purely for transactions

• Items with value in themselves as well as in their use as money

• Government-issued paper currency backed by gold reserves

• Currency accepted only within a specific territory

In the role of money as a unit of account, what does it primarily provide?

• A physical medium for transactions

• A means of deferring payment over time

• A common measure of value for comparing goods and services

• A store of value immune to inflation

The use of piloncitos and gold bar terrings in the Philippines occurred during which period?

• Spanish Colonial Period

• American Period

• Pre-Hispanic Period

• Japanese Occupation

Which currency, introduced during the Japanese Occupation, became practically worthless due to overprinting and inflation?

• Mexican Peso

• New Design Series

• Mickey Mouse Money

• New Generation Currency

In monetary policy, open market operations, reserve requirements, and discount rates are tools used primarily by:

• Private commercial banks

• The Central Bank

• The Department of Finance

• The World Bank

M1 in money supply refers to:

• M2 + large time deposits and broader money

• Currency in circulation + demand deposits

• Savings deposits + small time deposits

• Large time deposits + treasury certificates

Which motive for holding money involves retaining funds for unexpected expenses?

• Transactions Motive

• Speculative Motive

• Precautionary Motive

• Deferred Payment Motive

When the money supply increases, with other factors constant, interest rates generally:

• Increase, leading to reduced borrowing

• Decrease, leading to increased borrowing and spending

• Remain fixed due to market regulation

• Increase, leading to greater savings

Which of the following is NOT listed as an impact of money?

• Builds Public Confidence

• Affects Saving and Investment

• Ensures Political Stability

• Influences Government Policy

The statement 'A peso today is worth more than a peso in the future' refers to:

• Inflation Risk

• The Time Value of Money

• Monetary Policy

• Interest Rate Fluctuations