Question : 11.1   What Is Money? 1) Which statement about money most correct? : 1227812

11.1   What Is Money?

 

1) Which statement about money is most correct?

A) Money is a new invention and only includes dollar bills and coins.

B) Money is a new invention and can include anything that is accepted as a means of payment.

C) Money has been around for a long time and can include anything that is accepted as a means of payment.

D) Money has been around for a long time and only includes dollar bills and coins.

E) Money has been around for a long time and only includes checking and savings accounts.

Answer:  C

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  WM

 

2) For a commodity or token to be money it must

A) be accepted in exchange for all other goods and services.

B) have a double coincidence of wants.

C) be backed by government precious metals, like gold.

D) be paper.

E) be issued by the government or a government agency.

Answer:  A

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  CT

 

3) Money is any commodity or token that is

A) backed by gold.

B) generally accepted as a means of measurement.

C) generally accepted as a means of payment.

D) issued by the government.

E) a store of value.

Answer:  C

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  CT

4) Money is any commodity or token that

A) is generally accepted as a means of payment.

B) is backed up and controlled by the government.

C) is naturally accepted by households to accumulate wealth.

D) does not change in value over time.

E) is backed by gold.

Answer:  A

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  DMC

 

5) In order for any given commodity to be considered money, it has to

A) have some intrinsic value.

B) be generally acceptable as a means of payment.

C) be issued and controlled by some governmental institution.

D) be convertible into gold or silver.

E) be used in barter transactions.

Answer:  B

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  DMC

 

6) For anything to be considered money it must be

A) a valuable commodity, such as gold.

B) a token, such as a green piece of paper.

C) either a commodity or a token, as long as it is generally accepted as a means of payment.

D) a mystical token, such as whale teeth.

E) used in barter transactions.

Answer:  C

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  DMC

 

7) A common trait of money through history and across cultures is that money

A) always had mystical properties.

B) was always issued by the local government.

C) was always based on gold or some other precious commodity.

D) was always generally accepted as a means of payment.

E) was always fiat money.

Answer:  D

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  DMC

8) Money is best defined as

A) anything that has value.

B) anything accepted as a means of payment.

C) anything that can be sold to pay for something.

D) currency.

E) anything that is backed by gold.

Answer:  B

Topic:  Money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  NAU

 

9) Money must be ________ which includes the fact that is should ________.

A) in physical form; not be transferable using electronic means

B) accepted as a means of payment across countries’ borders; not be fiat money

C) generally accepted as a means of payment; be recognizable and divisible into small parts

D) whatever is used in a barter system; transferable across countries’ borders

E) backed by gold; not decrease in value over time

Answer:  C

Topic:  What is money?

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  CD new

 

10) For an asset to be a “means of payment” means the asset

A) is valuable and backed by gold.

B) is valuable and backed by the government.

C) can be used to settle a debt.

D) requires a double coincidence of wants.

E) must be used when bartering.

Answer:  C

Topic:  What is money?

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  MR