Chapter 13 Section 1

Question 0

Standard of Value

Answer 0

The identification of the type of value being utilized in a specific engagement.

Question 1

Medium of Exchange

Answer 1

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.

Question 2

Store of Value

Answer 2

A store of value is the function of an asset that can be saved, retrieved, and exchanged at a later time, and be predictably useful when retrieved.

Question 3

Commodity Money

Answer 3

Money whose value comes from a commodity from which it was made.

Question 4

Representative Money

Answer 4

Money that has value greater than its value as a material substance.

Question 5

Specie

Answer 5

Gold or silver.

Question 6

Fiat Money

Answer 6

Money that the government declares legal tender although it cannot be converted into standard specie.

Question 7

Currency

Answer 7

The metal or paper medium of exchange that is presently used.

Question 8

Near Money

Answer 8

Liquid assets that can be converted to cash very quickly.