Banking

Question 1

Which of the following is the least liquid?

Revolt · Accepted Answer

investment account

Question 2

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 3

Why must old currency be taken out of circulation when new currency is made?

Revolt · Accepted Answer

Too much currency in an economic system will cause inflation.

Question 4

How is using money related to bartering?

Revolt · Accepted Answer

It is a substitute for bartering.

Question 5

The term liquidity refers to

Revolt · Accepted Answer

how quickly money can be exchanged.

Question 6

Exchange rates can indicate economic health by

Revolt · Accepted Answer

showing the relative strength of different nations’ currencies.

Question 7

What kind of money is a gold certificate considered to be?

Revolt · Accepted Answer

representative

Question 8

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 9

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

Revolt · Accepted Answer

different denominations.

Question 10

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.

Banking Answers