Types and Functions of Money
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Questions and Answers

How does Prof. Walker define money?

  • Anything which the state declares as money
  • The means of valuation and payment
  • Anything which is generally acceptable in exchange of goods and services or in repayment of debts (correct)
  • A unit of account, a means of payment, and a store of value

    • According to Professor Coleborn, what is money?

  • Anything which the state declares as money
  • The means of valuation and payment (correct)
  • Anything which is generally acceptable in exchange of goods and services or in repayment of debts
  • A unit of account, a means of payment, and a store of value

    • What is the fundamental characteristic of money?

  • Its declaration as money by the state
  • Its general acceptability by the people in exchange of goods and services or in repayment of debts (correct)
  • Its ability to store value over time
  • Its physical form such as coins or paper notes

    • What is metallic money?

    <p>Money in the form of coins made from metals like gold or silver (C)</p> Signup and view all the answers

    What makes defining money in exact terms difficult?

    <p>The variety of forms it comes in (C)</p> Signup and view all the answers

    How do some economists define money in legal terms?

    <p>As anything which the state declares as money (A)</p> Signup and view all the answers

    What is the characteristic of full bodied coins?

    <p>Face value is equal to the value of metal contained in the coin (C)</p> Signup and view all the answers

    What type of money refers to notes made of paper issued by the central bank or government?

    <p>Paper Money (A)</p> Signup and view all the answers

    What type of money has a face value more than the value of the paper?

    <p>Inconvertible Money / Fiat Money (B)</p> Signup and view all the answers

    What is the characteristic of convertible money?

    <p>It can be converted into gold or silver (B)</p> Signup and view all the answers

    Which type of money can be easily converted into metallic (gold & silver) form on demand?

    <p>Representative Money (B)</p> Signup and view all the answers

    What is the characteristic of token money?

    <p>Face value is greater than the value of metal contained in the coin (D)</p> Signup and view all the answers

    Which type of money is fully backed by equal metallic reserve?

    <p>Representative Money (A)</p> Signup and view all the answers

    What type of money has a face value more than the value of the paper?

    <p>Inconvertible Money / Fiat Money (C)</p> Signup and view all the answers

    What type of money can be converted into gold, silver i.e. metallic reserves?

    <p>Representative Money (A)</p> Signup and view all the answers

    What type of money can be converted into gold, silver i.e. metallic reserves?

    <p>Full Bodied Coins (C)</p> Signup and view all the answers

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