Money Main Idea

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Questions and Answers

What are the three functions of money?

  • To serve as a medium of exchange, to store value, and to measure value (correct)
  • To serve as a medium of exchange, to store value, and to measure goods
  • To serve as a medium of trade, to store value, and to measure goods
  • To serve as a medium of exchange, to store goods, and to measure goods

What is the definition of money according to economists?

  • Anything that people use to store their wealth
  • Anything that is commonly traded
  • Anything that is made of precious metals
  • Anything that people are willing to accept in exchange for goods (correct)

What gives money its value?

  • The amount of precious metal it contains
  • The confidence that someone else will accept its value (correct)
  • The alternative uses it has
  • The cost to make it

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