#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 does 'fungibility' mean in the context of money?
The ability to be substituted for another unit of the same value
ExplanationInterchangeability without affecting value.
#7
Which economist proposed the 'store of value' function of money?
Aristotle
ExplanationAristotle emphasized money's role in retaining worth over time.
#8
What term describes the characteristic of money where its value remains relatively stable over time?
Store of value
ExplanationConsistency in retaining purchasing power.
#9
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.
#10
Which of the following is NOT a characteristic of commodity money?
Subjectivity
ExplanationInherent value derived from the commodity itself.
#11
Which of the following is an example of fiat money?
US dollar bills
ExplanationCurrency with no intrinsic value, backed by government decree.
#12
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.
#13
Which of the following is NOT a historical form of money?
Bitcoin
ExplanationRelatively recent digital currency.
#14
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.