#1
Which of the following is NOT a characteristic of money?
Subjectivity
ExplanationNot universally agreed upon value.
#2
What characteristic of money refers to its ability to be easily exchanged for goods and services?
Acceptability
ExplanationWidespread agreement on its use as a medium of exchange.
#3
Which of the following is NOT a function of money?
Productivity of labor
ExplanationNot a direct role in the economic functions of money.
#4
Which of the following is NOT a characteristic of fiat money?
Intrinsic value
ExplanationLack of inherent worth.
#5
What term describes the characteristic of money where it can be easily carried and transferred from one person to another?
Portability
ExplanationConvenience in transport and transfer.
#6
What characteristic of money allows it to retain its value over time?
Store of value
ExplanationPreservation of purchasing power.
#7
Which of the following is an example of commodity money?
Gold coins
ExplanationValue derived from the material it's made of.
#8
What does 'fungibility' mean in the context of money?
The ability to be substituted for another unit of the same value
ExplanationInterchangeability without affecting value.
#9
Which economist proposed the 'store of value' function of money?
Aristotle
ExplanationAristotle emphasized money's role in retaining worth over time.
#10
What term describes the characteristic of money where its value remains relatively stable over time?
Store of value
ExplanationConsistency in retaining purchasing power.
#11
In the context of money, what does 'unit of account' mean?
The ability to represent the value of goods and services
ExplanationStandard measure for expressing value.
#12
Which of the following is NOT a characteristic of commodity money?
Subjectivity
ExplanationInherent value derived from the commodity itself.
#13
Which of the following is NOT a form of money?
Stock certificates
ExplanationRepresent ownership, not a medium of exchange.
#14
What is the term for the characteristic of money where it can be easily divided into smaller units to facilitate transactions?
Divisibility
ExplanationAbility to break into smaller denominations without loss of value.
#15
What term describes the characteristic of money where it is widely recognized and accepted as a medium of exchange?
Acceptability
ExplanationGeneral agreement on its use in transactions.
#16
Which of the following is a disadvantage of using commodity money?
Difficulty in transport
ExplanationBulky and inconvenient for large transactions.
#17
Which of the following is an example of fiat money?
US dollar bills
ExplanationCurrency with no intrinsic value, backed by government decree.
#18
What term describes the characteristic of money where it is accepted as a means of payment because people have confidence in its value?
Legal tender
ExplanationRequired acceptance for settling debts.
#19
Which of the following is NOT a historical form of money?
Bitcoin
ExplanationRelatively recent digital currency.
#20
What is the term for the characteristic of money where it is widely accepted as a means of final payment?
Legal tender
ExplanationMandatory acceptance for settling debts.