Money Quiz – Flashcards

What is one problem that might commonly occur when one is bartering? Someone wants to trade a valuable item for a less valuable one. Two people have different ideas about the value of an item. Someone wants to barter a good in exchange for a service. Two people want to trade items of equal or nearly equal value.

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

Which is an example of a demand account? savings account investment account credit account checking account

Which of these scenarios involves commodity money? A girl writes a check to her friend for a stack of valuable comic books. A boy starts a lemonade stand and sells each drink for twenty-five cents. A woman offers her neighbor a US silver dollar in exchange for a bicycle. A man buys some T-shirts and pays with a US fifty-dollar bill.

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

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

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

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

The condition of a country's_______depends on its people's ability to exchange money for goods and services.

The term "liquidity" refers to how quickly money can be exchanged. the true monetary value of an investment. the shifting supply of money in the economy. how much wealth an individual has amassed.