Courses » SS1 » SS1 Commerce » Commerce Exam Topics » Meaning and history/ evolution of money. - Questions and Answers

Meaning and history/ evolution of money. - SS1 Commerce Past Questions and Answers - page 1

1

What is the main purpose of money?

A

To store goods and services

B

To serve as a medium of exchange, unit of account, and store of value

C

To represent a claim on a commodity

correct option: b

To serve as a medium of exchange, unit of account, and store of value

Users' Answers & Comments
2

Which of the following was an early form of money?

A

Shells

B

) Online banking

C

 Cryptocurrency

correct option: a

Shells

Users' Answers & Comments
3

What is fiat money?

A

Money backed by a commodity

B

Money with intrinsic value

C

Money declared as legal tender by the government

correct option: c

Money declared as legal tender by the government

Users' Answers & Comments
4

What is representative money?

A

Money backed by a commodity

B

Money with intrinsic value

C

Money declared as legal tender by the government

correct option: a

Money backed by a commodity

Users' Answers & Comments
5

Which form of money relies on people's trust in the government and the economy?

A

Fiat money

B

Representative money

C

Representative money

correct option: a

Fiat money

Users' Answers & Comments
6

What is the primary purpose of money?

The primary purpose of money is to serve as a medium of exchange, unit of account, and store of value.

Users' Answers & Comments
7

What is the main difference between commodity money and fiat money?

What is the main difference between commodity money and fiat money?

Users' Answers & Comments
Recommended: SS1 Commerce Lessons
Please share this, thanks: