Notes 1

Question 0

Money must serve as a _______, a means through which goods and services can be exchanged

Answer 0

Medium of exchange

Question 1

___ is anything that people will accept as payment for goods and services

Answer 1

Money

Question 2

_____ is the exchange of goods and services without using money

Answer 2

Barter

Question 3

Money must also serve as a _____- determines the economic worth in the exchange process

Answer 3

Standard of value

Question 4

______is something that holds its value over time

Answer 4

A store of value

Question 5

_____ is a sustained rise in the general level of prices

Answer 5

Inflation

Question 6

What are the physical properties of money?

Answer 6

Durability
Portability
Divisibility
Uniformity

Question 7

Economic properties of money:

Answer 7

Stability of value
Scarcity
Acceptability

Question 8

Money draws its value from 3 possible sources

Answer 8

Commodity money
Representative money
Fiat money

Question 9

_____ derives its value from the type of material from which it is composed

Answer 9

Commodity money

Question 10

______ is paper money back by something tangible that gives it value

Answer 10

Representative money