Money primarily serves as a:
A) Form of entertainment
B) Medium of exchange
C) Government policy
D) Natural resource
Which of the following is NOT a function of money?
A) Store of value
B) Unit of account
C) Means of production
D) Medium of exchange
Which type of money has intrinsic value?
A) Fiat money
B) Commodity money
C) Digital currency
D) Paper currency
Fiat money is backed by:
A) Gold reserves
B) Government decree
C) Oil prices
D) Natural resources
Which function of money allows it to measure the value of goods and services?
A) Store of value
B) Unit of account
C) Medium of exchange
D) Standard of deferred payment
Money that is legally accepted for transactions is known as:
A) Barter money
B) Legal tender
C) Cryptocurrency
D) Virtual money
Which of the following is an example of near money?
A) Gold jewelry
B) Government bonds
C) Paper currency
D) Credit cards
What is the primary characteristic of money that prevents it from losing value quickly?
A) Durability
B) Portability
C) Acceptability
D) Homogeneity
Which type of money is issued and controlled by a central authority?
A) Barter money
B) Fiat money
C) Cryptocurrency
D) Commodity money
The ability of money to be divided into smaller units refers to its:
A) Durability
B) Divisibility
C) Portability
D) Acceptability
Which of the following is a function of money?
A) Conducting elections
B) Facilitating transactions
C) Increasing production
D) Regulating employment
What type of money is Bitcoin?
A) Fiat money
B) Digital currency
C) Commodity money
D) Near money
Which of the following is an example of fiduciary money?
A) Gold coins
B) Paper currency
C) Barter goods
D) Cryptocurrency
Why is money considered a store of value?
A) It loses value quickly
B) It allows purchasing power to be saved for the future
C) It is accepted everywhere
D) It is always tangible
Which form of money was used in the barter system?
A) Fiat money
B) Representative money
C) Commodity money
D) Plastic money
Which quality of money makes it easy to carry?
A) Durability
B) Portability
C) Stability
D) Acceptability
What is the main advantage of fiat money?
A) It has intrinsic value
B) It is easy to counterfeit
C) It is backed by government authority
D) It is not widely accepted
Which form of money includes checks and demand deposits?
A) Near money
B) Plastic money
C) Representative money
D) Token money
Which type of money is issued based on a physical commodity?
A) Fiat money
B) Commodity money
C) Digital money
D) Token money
The barter system was replaced by money because:
A) It required no government intervention
B) It was more efficient for trade
C) It was widely accepted by all economies
D) It made taxation easier
Which is NOT a characteristic of good money?
A) Scarcity
B) Acceptability
C) High weight
D) Stability
What is the main disadvantage of commodity money?
A) It lacks government support
B) It is difficult to carry and store
C) It is widely accepted
D) It has no intrinsic value
Which of the following is an example of representative money?
A) Gold-backed currency
B) Paper currency without backing
C) Bitcoin
D) Barter goods
Money facilitates trade by acting as:
A) A production tool
B) A store of labor
C) A medium of exchange
D) A government asset
Which of the following is NOT considered money?
A) Paper currency
B) Bank deposits
C) Barter items
D) Coins
Which characteristic makes money widely accepted?
A) Durability
B) Stability
C) Government enforcement
D) Acceptability
Which of the following is NOT a function of money?
A) Medium of exchange
B) Store of value
C) Creating goods
D) Unit of account
Why is fiat money widely used?
A) It is backed by gold reserves
B) It is supported by government decree
C) It is the same as digital currency
D) It has intrinsic value
Money helps in economic growth by:
A) Making barter trade efficient
B) Reducing financial transactions
C) Facilitating investment and trade
D) Controlling all government policies
Which is NOT a type of money?
A) Cryptocurrency
B) Fiat money
C) Labor money
D) Commodity money
