Banking

Question 1

A currency’s exchange rate is

Revolt · Accepted Answer

its changing value relative to other currencies.

Question 2

The term liquidity refers to

Revolt · Accepted Answer

how quickly money can be exchanged.

Question 3

What would happen if currency in all countries had fewer denominations, i.e. fewer varieties of coins or numbers of bills?

Revolt · Accepted Answer

People could not charge as many different prices for goods.

Question 4

Which is an advantage of using modern currency instead of a barter system?

Revolt · Accepted Answer

ability to store and use a form that is accepted everywhere

Question 5

In the United States, dollar bills, nickels, and dimes are

Revolt · Accepted Answer

different denominations.

Question 6

What is one problem that might commonly occur when one is bartering?

Revolt · Accepted Answer

Two people have different ideas about the value of an item.

Question 7

How is using money related to bartering?

Revolt · Accepted Answer

It is a substitute for bartering.

Question 8

To barter means to

Revolt · Accepted Answer

trade.

Question 9

Exchange rates can indicate economic health by

Revolt · Accepted Answer

showing the relative strength of different nations’ currencies.

Question 10

A currency is a system of money created and used by

Revolt · Accepted Answer

a nation or region of the world.

Banking Answers