#1
Which of the following is NOT a function of money?
Medium of exchange
Store of value
Unit of labor
Unit of account
#2
What is the primary function of currency?
To facilitate barter trade
To serve as a medium of exchange
To maintain value over time
To provide a standard for deferred payments
#3
Which of the following is NOT a characteristic of money?
Durability
Scarcity
Divisibility
Indestructibility
#4
What is the term for a situation where the value of money decreases over time?
Hyperinflation
Deflation
Stagflation
Inflation
#5
What is the term for the physical representation of currency?
Digital currency
Bank deposit
Coinage
Electronic transfer
#6
Which of the following is NOT a characteristic of commodity money?
Durability
Scarcity
Uniformity
Divisibility
#7
Which of the following is a characteristic of commodity money?
It has no intrinsic value
It is easily transportable
It is backed by a central bank
It is directly useful for non-monetary purposes
#8
What is the term for the total amount of money in circulation within an economy?
Liquidity
Money supply
Gross domestic product (GDP)
Aggregate demand
#9
What is the term for the practice of increasing the money supply by a central bank?
Monetary tightening
Monetary easing
Fiscal policy
Budget deficit
#10
What is the term for the process of converting a firm's assets into cash?
Leveraging
Liquidity management
Monetization
Liquidation
#11
What is the term for a currency whose value is pegged to another currency or a commodity?
Floating currency
Convertible currency
Fixed currency
Digital currency
#12
Which of the following is NOT a function of central banks in relation to currency?
Issuing currency
Regulating interest rates
Managing foreign exchange reserves
Conducting monetary policy
#13
Which of the following is a characteristic of fiat money?
It is backed by a physical commodity
It has intrinsic value
Its value is derived from government decree
It is subject to rapid inflation
#14
Which of the following is a characteristic of near money?
High liquidity
Low risk
Directly usable for transactions
Not accepted as a medium of exchange
#15
What is the term for the risk of loss in value due to changes in exchange rates?
Exchange rate risk
Credit risk
Market risk
Inflation risk
#16
In the context of currency, what does 'parity' refer to?
Equal value of two currencies
Fixed exchange rate
Inflation rate
Market equilibrium
#17
Which of the following is a feature of digital currency?
Decentralized control
Physical representation
Government regulation
Inflationary nature
#18
Which of the following is NOT a component of M1 money supply?
Currency in circulation
Checkable deposits
Savings deposits
Traveler's checks