Money

Question 1

What gives commodity money its value?

Revolt · Accepted Answer

the type of material with which it is made

Question 2

How is using money related to bartering?

Revolt · Accepted Answer

It is a substitute for bartering.

Question 3

What is a potential disadvantage of using debit cards when compared to barter and traditional currency?

Revolt · Accepted Answer

ease of overspending

Question 4

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 5

Exchange rates can indicate economic health by

Revolt · Accepted Answer

showing the relative strength of different nations’ currencies.

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

What might cause a change in the value of fiat money?

Revolt · Accepted Answer

a change in government regulations

Question 8

A currency is a system of money created and used by

Revolt · Accepted Answer

a nation or region of the world.

Question 9

Which of the following is the least liquid?

Revolt · Accepted Answer

investment account

Question 10

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

Money Answers