10 Questions
Most contemporary money systems are based on unbacked fiat money without use value.
True
Money is only used as a medium of exchange and does not serve any other function.
False
The value of money is determined by its intrinsic value as a commodity.
False
The United States dollar is an example of fiat money and is declared legal tender by the government.
True
The money supply of a country comprises all currency in circulation and nothing else.
False
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: medium of exchange, a unit of account, a ______ and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value. Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or mo.
store of value
Nearly all contemporary money systems are based on unbacked fiat money without use value. Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for 'all debts, public and private', in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or mo.
medium of exchange
Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value. Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for 'all debts, public and private', in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or mo.
unit of account
Money was historically an emergent market phenomenon that possessed ______ as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.
intrinsic value
Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for 'all debts, public and private', in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or mo.
fiat money
Study Notes
Definition of Money
- Money is an item or verifiable record accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.
Functions of Money
- Medium of exchange
- Unit of account
- Store of value
- Sometimes, a standard of deferred payment
History of Money
- Historically, money was an emergent market phenomenon with intrinsic value as a commodity.
Contemporary Money Systems
- Nearly all contemporary money systems are based on unbacked fiat money without use value.
Value of Money
- The value of money is derived by social convention.
- It is declared by a government or regulatory entity to be legal tender.
- It must be accepted as a form of payment within the boundaries of the country.
Money Supply
- Comprises all currency in circulation (banknotes and coins currently issued).
- Depending on the definition, it may also include other forms of money.
Test your knowledge about money and its functions with this quiz. Explore the concept of money as a medium of exchange, unit of account, store of value, and standard of deferred payment. See how much you know about the history and significance of money in different socio-economic contexts.
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