Money & Banking: Introduction and Evolution of Money
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Questions and Answers

Which type of money has no consumption or investment use and is basically useless pieces of paper?

  • Representative money
  • Fiat money (correct)
  • e-money
  • Commodity money
  • Which characteristic of money refers to its ability to retain the same shape, form, and substance over an extended period of time?

  • Transportability
  • Non-counterfeitability
  • Durability (correct)
  • Divisibility
  • What type of money is backed 100% by precious metals?

  • Representative money (correct)
  • Commodity money
  • e-money
  • Fiat money
  • Which characteristic of money refers to its ability to be divided into small increments for exchange of goods with varying values?

    <p>Divisibility</p> Signup and view all the answers

    Which characteristic of money means that it cannot be easily duplicated?

    <p>Noncounterfeit ability</p> Signup and view all the answers

    What type of money has intrinsic value due to its material composition such as gold, silver, or other precious metals?

    <p>Commodity money</p> Signup and view all the answers

    What type of money consists of the book credit that banks extend to their depositors?

    <p>Bank money/checks</p> Signup and view all the answers

    Which function of money measures the value of various goods and services produced in an economy?

    <p>Unit of value</p> Signup and view all the answers

    What is the characteristic of money that refers to its ability to facilitate transactions of goods and services?

    <p>Medium of exchange</p> Signup and view all the answers

    Which type of money is a good whose value serves as the value of money?

    <p>Commodity money</p> Signup and view all the answers

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