10 Questions
Which type of money has no consumption or investment use and is basically useless pieces of paper?
Fiat money
Which characteristic of money refers to its ability to retain the same shape, form, and substance over an extended period of time?
Durability
What type of money is backed 100% by precious metals?
Representative money
Which characteristic of money refers to its ability to be divided into small increments for exchange of goods with varying values?
Divisibility
Which characteristic of money means that it cannot be easily duplicated?
Noncounterfeit ability
What type of money has intrinsic value due to its material composition such as gold, silver, or other precious metals?
Commodity money
What type of money consists of the book credit that banks extend to their depositors?
Bank money/checks
Which function of money measures the value of various goods and services produced in an economy?
Unit of value
What is the characteristic of money that refers to its ability to facilitate transactions of goods and services?
Medium of exchange
Which type of money is a good whose value serves as the value of money?
Commodity money
Learn about the definition and functions of money, as well as the evolution of money from commodity to representative and fiat money. Explore how money serves as a medium of exchange in transactions and the transfer of goods and services.
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