Podcast
Questions and Answers
What gives money its value?
What gives money its value?
- Its chemical composition
- Its physical appearance
- The historic image on it
- Being a medium of exchange, a unit of measurement, and a storehouse for wealth (correct)
How is money defined based on its functions?
How is money defined based on its functions?
- By the historic image on it
- By its chemical content
- As anything used as a medium of exchange and generally accepted as a means of payment (correct)
- By its physical form
How does money facilitate trade of goods and services?
How does money facilitate trade of goods and services?
- By storing wealth only
- Through its chemical composition
- By being valuable due to its physical form
- By allowing people to trade indirectly and understand the price of goods (correct)
What does 'medium' refer to in the context of money?
What does 'medium' refer to in the context of money?
What makes money valuable according to the text?
What makes money valuable according to the text?
How does money act as an instrument of convenience between parties?
How does money act as an instrument of convenience between parties?
What is one of the limitations of a barter system mentioned in the text?
What is one of the limitations of a barter system mentioned in the text?
What commodity was initially chosen for use as currency, according to the text?
What commodity was initially chosen for use as currency, according to the text?
Why did the use of livestock and grain prove to be difficult as currency?
Why did the use of livestock and grain prove to be difficult as currency?
What was a limitation of the abundance or scarcity of supply as currency according to the text?
What was a limitation of the abundance or scarcity of supply as currency according to the text?
Why did ancient societies eventually move away from barter towards using money?
Why did ancient societies eventually move away from barter towards using money?
What was considered a stable form of currency due to its durability and divisibility?
What was considered a stable form of currency due to its durability and divisibility?
