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Questions and Answers
Anything called money will be?
Anything called money will be?
- Large and heavy
- Scarce (correct)
- Backed by gold
- Easy to create
Money and currency are related because?
Money and currency are related because?
- Money is a form of currency
- Currency is a form of money (correct)
- Money refers only to debts
- They are interchangeable terms
How do we know our current money has value?
How do we know our current money has value?
- People accept it in exchange for goods or services (correct)
- It has many security measures
- It is backed by gold
- People talk about money a lot
Which statement shows that money is a 'store of value'?
Which statement shows that money is a 'store of value'?
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Which statement shows that money is a 'measure of value'?
Which statement shows that money is a 'measure of value'?
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Study Notes
Money Characteristics
- Money is defined as scarce, indicating its limited availability in an economy.
- Currency serves as a specific form of money, highlighting the relationship between the two concepts.
Value of Money
- The current money's value is determined by its acceptance for the exchange of goods and services.
- A "store of value" function is illustrated when money retains its worth over time, exemplified by using ten dollars received last year.
Measure of Value
- Money functions as a "measure of value," enabling individuals to assign worth to goods, such as stating an mp3 player's value as two hundred dollars.
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Description
Test your knowledge on the principles of money and currency with this quiz. Explore important concepts such as scarcity and the relationship between money and currency. Perfect for students looking to understand financial fundamentals.
