#1
Which function of money refers to its ability to be easily exchanged for goods and services?
Medium of exchange
ExplanationFacilitating transactions by eliminating the need for barter.
#2
What function of money helps in comparing the value of different goods and services?
Unit of account
ExplanationProviding a standard measure for value comparison.
#3
Which of the following is NOT a function of money?
Unit of production
ExplanationMoney doesn't create goods or services.
#4
In the context of money, what is 'portability'?
The ability to carry large quantities easily
ExplanationEase of transport and transfer.
#5
What is the term for a situation where money loses its value rapidly, resulting in a rise in prices?
Hyperinflation
ExplanationRapid decrease in purchasing power.
#6
Which function of money allows people to hold onto their wealth in a form that will last into the future?
Store of value
ExplanationPreservation of purchasing power over time.
#7
What is the term for money being used to settle debts at some time in the future?
Standard of deferred payment
ExplanationServing as a measure for future obligations.
#8
Which function of money involves money maintaining its value over time?
Store of value
ExplanationPreservation of purchasing power over time.
#9
What is the term for money that is backed by a physical commodity such as gold or silver?
Commodity money
ExplanationValue derived from intrinsic worth.
#10
In the context of money, what does 'divisibility' mean?
The ability to be easily divisible
ExplanationBreaking into smaller units without loss of value.
#11
In the context of money, what does 'fungibility' mean?
The interchangeable and indistinguishable nature of each unit
ExplanationEvery unit is identical and can be exchanged.
#12
Which function of money is related to its acceptability in transactions?
Medium of exchange
ExplanationBeing universally accepted for trade.
#13
In the context of money, what does 'durability' refer to?
The ability to withstand wear and tear
ExplanationResistance to physical deterioration.
#14
In the context of money, what does 'acceptability' refer to?
The willingness of people to use it as a medium of exchange
ExplanationReadiness of individuals to accept it for transactions.
#15
In the context of money, what does 'elasticity' refer to?
The ability to expand or contract in supply
ExplanationFlexibility in adjusting to changes in demand.