money

A currency's exchange rate is A. how many denominations the currency has. B. its stable rate as established by the government. C. how easily it can be divided into other currencies. D. its changing value relative to other currencies.

What is true of representative money? Check all that apply. A. It can be exchanged for a valuable good. B. It was once the most common form of money. C. It was used in systems involving a "gold standard." D. It can be traded for a commodity such as silver. E. It is made with precious metals or stones.

Why must old currency be taken out of circulation when new currency is made? A. The old currency is more valuable than the new currency. B. The new currency is much more liquid than the old currency. C. Too much currency in an economic system will cause inflation. D. Too much currency in an economic system will create artificial wealth.

What would happen if currency in all countries had fewer denominations? A. People would be more likely to confuse the value of currencies. B. Exchanging money between countries would be much easier. C. People could not charge as many different prices for goods. D. All goods would be more expensive than they currently are.

A currency is a system of money created and used by A. an individual or a group of people. B. all people who live in the same era. C. a nation or region of the world. D. a town, city, or state within a region.

When might it be important to know a currency's exchange rate? A. when planning expenses for an overseas trip B. when changing money into smaller denominations C. when preparing to buy something expensive D. when deciding which college is the best value

Exchange rates can indicate economic health by A. showing exactly how much of each nation's currency is liquid. B. revealing how much of each nation's income goes to savings. C. showing the relative strength of different nations' currencies. D. examining spending patterns across nations and continents.

What types of money are included in the M2 category? Check all that apply. A. currency B. savings accounts C. checking accounts D. commodity money E. short-term investment accounts

To barter means to A. sell. B. create. C. trade. D. earn.

People might choose to use a debit card rather than cash for purchases because A. they do not want to carry around large amounts of cash. B. their banking institutions charge high fees for cash withdrawals. C. most items cost less when purchased with a debit card. D. debit cards have a higher value than cash and can buy more.