Role of money
State the three main functions of money.
Medium of exchange, store of value, unit of account.
Which of the following is not a medium of exchange? Coins, Banknotes, Barter systems, Debit cards
Barter System
What advantage does mobile money have over cash?
It allows instant and safe electronic transactions without the need for physical money.
Which of the following best explains the role of money as a "store of value"?
Money can be saved and used in the future without losing value quickly.
Coins
Metallic money used mainly for small transactions
Why do banks issue debit and credit cards as instruments of exchange?
To make payments more convenient, secure, and to reduce reliance on cash.
Why is money considered more efficient than barter?
Because money eliminates the double coincidence of wants required in barter, making trade faster and easier.
Debit card
Electronic payment linked directly to a bank account
What does the widespread use of cheques in business indicate about money?
That money can exist in non-cash forms to facilitate larger or safer transactions.
Which role of money is highlighted when prices of goods are listed in dollars?
Unit of account
Mobile money
Digital payment using a mobile device or app
Why are banknotes designed with special security features?
To prevent counterfeiting and ensure public confidence in money as a medium of exchange.
A machine that dispenses cash
Automated teller machine (ATM)
Banknotes
Paper money issued by central banks
An instrument of exchange that allows borrowing up to a limit that must be repaid later.
Credit Card