FINANCIAL LITERACY 11-16 EXERCISES
AND ANSWERS.
Which of the following types of money draws its value from the type of material from
which it is composed?
commodity money
value money
fiat money
representative money - Answers-commodity money
Commodity money is the main type of money used today.
False
True - Answers-false
Fiat money only has value because the government says it does.
True
False - Answers-true
When using a system of barter, you give money in exchange for goods and services.
True
False - Answers-false
Match each term to its definition. - Answers-divisibility
the ability of money to be dividable so that change can be made
portability
the ability of money to be small, light, and easy to carry
durability
the ability of money to be able to hold up after many transactions
uniformity
the need for paper money to have consistent form, markings, and size, and for coins to
look different than other metal disks
The barter system, exchanging goods and services for other goods and services, is a
smooth and efficient way to handle economic transactions.
False
True - Answers-false
,Which of the following is NOT a function of money?
sustaining of value
standard of value
medium of exchange
store of value - Answers-sustaining of value
The dollar is the United States's basic monetary unit.
True
False - Answers-true
One of the functions of money is to act as a store of value, which means __________.
it keeps its value over time
it is accepted universally at all stores
it keeps its value better when being saved rather than being spent
it is valued more than store products
SAVE/CHECK ANSWERS - Answers-it keeps its value over time
Because money retains its value, it can be saved and then spent in the future.
True
False - Answers-true
Money's function of giving a method of expressing and measuring the costs of goods
and services is labeled __________.
standard of value
medium of exchange
store of value
standard of inflation - Answers-standard of value
Money gives a(n) _____ method of exchanging goods and services. (Select all that
apply.)
precise
convenient
flexible
unpredictable
SAVE/CHECK ANSWERS - Answers-precise
convenient
,flexible
_____ properties are characteristics of money itself, and _____ properties are
associated with the role money has within the market.
Physical, economic
Economic, standard
Physical, standard
Economic, physical - Answers-Physical, economic
Which of the following physical properties of money means that it is small and easy to
carry?
portability
uniformity
durability
divisibility - Answers-portability
Which property of money means that the purchasing power should be fairly steady?
stability of value
durability
scarcity
acceptability
SAVE/CHECK ANSWERS - Answers-stability of value
In general, the majority of people understand where money comes from.
False
True - Answers-false
The government is the source of money.
False
True - Answers-false
People take their system of money for granted.
True
False - Answers-true
Why is it important that paper bills are light and easy to carry?
because money needs to have the property of portability
because money needs to have the property of uniformity
because money needs to have the property of divisibility
, because money needs to have the property of scarcity - Answers-because money
needs to have the property of portability
The property of uniformity helps make money harder to counterfeit.
True
False - Answers-true
Why is it important for money to have the property of stability of value?
Rapid shifts in purchasing power would negatively affect money's ability to act as a
store of value.
Rapid shifts in purchasing power would negatively affect money's ability to have the
property of durability.
Rapid shifts in purchasing power would negatively affect money's ability have the
property of uniformity.
Rapid shifts in purchasing power would cause money to be more scarce and increase
its value.
SAVE/CHECK ANSWERS - Answers-Rapid shifts in purchasing power would negatively
affect money's ability to act as a store of value.
Which of the following is one of the two categories of the properties of money? (Select
all that apply.)
physical
economic
intellectual
intangible - Answers-physical
economic
Which of the following is NOT a function of money?
barter
standard of value
medium of exchange
store of value
SAVE/CHECK ANSWERS - Answers-barter
Which of the three types of currency is the least portable?
the cattle
the dollar bill
the shells
AND ANSWERS.
Which of the following types of money draws its value from the type of material from
which it is composed?
commodity money
value money
fiat money
representative money - Answers-commodity money
Commodity money is the main type of money used today.
False
True - Answers-false
Fiat money only has value because the government says it does.
True
False - Answers-true
When using a system of barter, you give money in exchange for goods and services.
True
False - Answers-false
Match each term to its definition. - Answers-divisibility
the ability of money to be dividable so that change can be made
portability
the ability of money to be small, light, and easy to carry
durability
the ability of money to be able to hold up after many transactions
uniformity
the need for paper money to have consistent form, markings, and size, and for coins to
look different than other metal disks
The barter system, exchanging goods and services for other goods and services, is a
smooth and efficient way to handle economic transactions.
False
True - Answers-false
,Which of the following is NOT a function of money?
sustaining of value
standard of value
medium of exchange
store of value - Answers-sustaining of value
The dollar is the United States's basic monetary unit.
True
False - Answers-true
One of the functions of money is to act as a store of value, which means __________.
it keeps its value over time
it is accepted universally at all stores
it keeps its value better when being saved rather than being spent
it is valued more than store products
SAVE/CHECK ANSWERS - Answers-it keeps its value over time
Because money retains its value, it can be saved and then spent in the future.
True
False - Answers-true
Money's function of giving a method of expressing and measuring the costs of goods
and services is labeled __________.
standard of value
medium of exchange
store of value
standard of inflation - Answers-standard of value
Money gives a(n) _____ method of exchanging goods and services. (Select all that
apply.)
precise
convenient
flexible
unpredictable
SAVE/CHECK ANSWERS - Answers-precise
convenient
,flexible
_____ properties are characteristics of money itself, and _____ properties are
associated with the role money has within the market.
Physical, economic
Economic, standard
Physical, standard
Economic, physical - Answers-Physical, economic
Which of the following physical properties of money means that it is small and easy to
carry?
portability
uniformity
durability
divisibility - Answers-portability
Which property of money means that the purchasing power should be fairly steady?
stability of value
durability
scarcity
acceptability
SAVE/CHECK ANSWERS - Answers-stability of value
In general, the majority of people understand where money comes from.
False
True - Answers-false
The government is the source of money.
False
True - Answers-false
People take their system of money for granted.
True
False - Answers-true
Why is it important that paper bills are light and easy to carry?
because money needs to have the property of portability
because money needs to have the property of uniformity
because money needs to have the property of divisibility
, because money needs to have the property of scarcity - Answers-because money
needs to have the property of portability
The property of uniformity helps make money harder to counterfeit.
True
False - Answers-true
Why is it important for money to have the property of stability of value?
Rapid shifts in purchasing power would negatively affect money's ability to act as a
store of value.
Rapid shifts in purchasing power would negatively affect money's ability to have the
property of durability.
Rapid shifts in purchasing power would negatively affect money's ability have the
property of uniformity.
Rapid shifts in purchasing power would cause money to be more scarce and increase
its value.
SAVE/CHECK ANSWERS - Answers-Rapid shifts in purchasing power would negatively
affect money's ability to act as a store of value.
Which of the following is one of the two categories of the properties of money? (Select
all that apply.)
physical
economic
intellectual
intangible - Answers-physical
economic
Which of the following is NOT a function of money?
barter
standard of value
medium of exchange
store of value
SAVE/CHECK ANSWERS - Answers-barter
Which of the three types of currency is the least portable?
the cattle
the dollar bill
the shells
