Nikolas Reece
Quiz by , created more than 1 year ago

2016 CSEC Economics (Section 5 - Financial Sector) Quiz on Money: Features, Functions and Money Supply, created by Nikolas Reece on 20/05/2016.

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Nikolas Reece
Created by Nikolas Reece almost 8 years ago
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Money: Features, Functions and Money Supply

Question 1 of 22

1

Divisibility is an important function of money because it

Select one of the following:

  • Encourages the process of specialisation

  • Removes the problems associated with barter

  • Enables small transactions to take place

  • Assists individuals to allocate wealth in a profitable manner

Explanation

Question 2 of 22

1

Justin takes ½ of his salary every month an purchases shares in the credit union in order to later purchase a sports car. Which function of money is this ½ of his salary performing?

Select one of the following:

  • A medium of exchange

  • A standard of deferred payment

  • A store of value

  • A standard of deferred exchange

Explanation

Question 3 of 22

1

Rob and Steele joined an underground group who were printing counterfeit money. Which quality of money is the group eroding?

Select one of the following:

  • Durability

  • Portability

  • Authenticity

  • Acceptability

Explanation

Question 4 of 22

1

Which of the following is NOT a function of money?

Select one of the following:

  • Unit of account

  • Form of credit

  • Store of value

  • Medium of exchange

Explanation

Question 5 of 22

1

What is money?

Select one of the following:

  • Notes and coins only

  • Cheques and debit cards only

  • Anything that is acceptable as a means of settling debts

  • Anything the seller pays to settle a debt

Explanation

Question 6 of 22

1

Which of the following is NOT a feature of money?

Select one of the following:

  • Portability

  • Uniformity

  • Divisibility

  • Suitability

Explanation

Question 7 of 22

1

What is the definition of 'broad' money?

Select one of the following:

  • Notes, coins, all chequing accounts and travellers’ cheques

  • Notes and coins plus savings deposits and money market accounts

  • M1 plus money market accounts only

  • M1 plus savings deposits and money market accounts.

Explanation

Question 8 of 22

1

Which of the following is NOT considered to be classified as narrow money

Select one of the following:

  • Savings deposit

  • Notes and coins

  • Chequing deposits

  • Fiat money

Explanation

Question 9 of 22

1

An informal arrangement where a small group of people contribute an equal fixed sum to a common fund is called

Select one of the following:

  • Money lender

  • Soufflé

  • Subsidies

  • Sou Sou

Explanation

Question 10 of 22

1

Which characteristic of money is crucial for it to be used as a medium of exchange?

Select one of the following:

  • Durability

  • Intrinsic value

  • Legal tender

  • Limited in supply

Explanation

Question 11 of 22

1

Money can be easily acquired and disposed of without high costs and with relative certainty as to its value. Which characteristic of money does this describe?

Select one of the following:

  • Acceptability

  • Durability

  • Liquidity

  • Purchasing power

Explanation

Question 12 of 22

1

The exchange of goods and services for other goods and services is known as:

Select one of the following:

  • Sou Sou

  • Credit

  • Barter

  • Bartender

Explanation

Question 13 of 22

1

In order for exchange to take place, there must be a

Select one of the following:

  • Double market

  • Double coincidence of wants

  • Double exchange

  • Doubles

Explanation

Question 14 of 22

1

Which of the following items will NOT be considered commodity money

Select one of the following:

  • Livestock

  • Gold

  • Silver

  • Paper money

Explanation

Question 15 of 22

1

“A monetary system where a country's currency or paper money has a value directly linked to gold”
This statement above is called the:

Select one of the following:

  • The Golden Rule

  • The Gold Standard

  • International Gold

  • The Gold System

Explanation

Question 16 of 22

1

"The Republic of Plentidolla in Eurpoe attempted to solve its economic issue by printing and distributing double the amount of money it now has, leading to greater economic problems" Which feature of money does this describe:

Select one of the following:

  • Stability

  • Acceptability

  • Durability

  • Portability

Explanation

Question 17 of 22

1

TV-Mart had a one day 50% sale on 60 inch Samsung flat screens. There was one last TV in store and Frank N Stein went to purchase it via cheque, however, the cashier refused to accept it and sold it to the person behind him for cash. What would have been the feature of Frank's payment by cheque that did not allow him to buy the TV.

Select one of the following:

  • He did not sign the cheque

  • It was not legal tender

  • Cash is more valuable than cheques

  • The cheques were not durable

Explanation

Question 18 of 22

1

A pair of shoes for $100 is worth four times as much as a cap. This function deals with the price of items

Select one of the following:

  • A medium of exchange

  • Store of value

  • Unit of account

  • Method of deferred payment

Explanation

Question 19 of 22

1

Trade is facilitated because money is acceptable

Select one of the following:

  • A medium of exchange

  • Store of value

  • Unit of account

  • Method of deferred payment

Explanation

Question 20 of 22

1

My flat screen tv can be bought on hire purchase

Select one of the following:

  • A medium of exchange

  • Store of value

  • Unit of account

  • Method of deferred payment

Explanation

Question 21 of 22

1

It can be accumulated and used to purchase a car in 3 years.

Select one of the following:

  • A medium of exchange

  • Store of value

  • Unit of account

  • Method of deferred payment

Explanation

Question 22 of 22

1

The total stock of money in the economy at a particular time is referred to as

Select one of the following:

  • The Central Bank Supply

  • Economic Liquidity

  • The Money Supply

  • Economic Supply

Explanation

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