Money example #46614

12 January 2023
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10 test answers
question
How is using money related to bartering?
answer
It is a substitute for bartering.
question
Why must old currency be taken out of circulation when new currency is made?
answer
Too much currency in an economic system will cause inflation.
question
What would happen if currency in all countries had fewer denominations?
answer
People could not charge as many different prices for goods.
question
What might cause a change in the value of fiat money?
answer
a change in government regulations
question
People might choose to use a debit card rather than cash for purchases because
answer
they do not want to carry around large amounts of cash.
question
In the United States, dollar bills, nickels, and dimes are
answer
NOT commodity money.
question
The condition of a country's ______ depends on its people's ability to exchange money for goods and services.
answer
economy
question
A currency's exchange rate is
answer
its changing value relative to other currencies.
question
What gives commodity money its value?
answer
the type of material with which it is made
question
When might it be important to know a currency's exchange rate?
answer
when planning expenses for an overseas trip
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question
How is using money related to bartering?
answer
It is a substitute for bartering.
question
Why must old currency be taken out of circulation when new currency is made?
answer
Too much currency in an economic system will cause inflation.
question
What would happen if currency in all countries had fewer denominations?
answer
People could not charge as many different prices for goods.
question
What might cause a change in the value of fiat money?
answer
a change in government regulations
question
People might choose to use a debit card rather than cash for purchases because
answer
they do not want to carry around large amounts of cash.
question
In the United States, dollar bills, nickels, and dimes are
answer
NOT commodity money.
question
The condition of a country's ______ depends on its people's ability to exchange money for goods and services.
answer
economy
question
A currency's exchange rate is
answer
its changing value relative to other currencies.
question
What gives commodity money its value?
answer
the type of material with which it is made
question
When might it be important to know a currency's exchange rate?
answer
when planning expenses for an overseas trip