CBP History and Properties of Money 2

Question 1

Which property of money refers to the ability to divide it into smaller units for transactions of varying sizes?

Accepted Answer

Divisibility

Answer

Portability

Answer

Durability

Answer

Fungibility

Question 2

The gold standard, where currency was backed by a fixed quantity of gold, was officially abandoned by the US in what year?

Accepted Answer

1971

Answer

1944

Answer

1964

Answer

1983

Question 3

What term describes the gradual decrease in purchasing power of a currency over time?

Accepted Answer

Inflation

Answer

Deflation

Answer

Stagflation

Answer

Devaluation

Question 4

Which ancient civilization is credited with creating some of the earliest standardized coins around 600 BCE?

Accepted Answer

Lydia

Answer

Egypt

Answer

Rome

Answer

Babylon

Question 5

What is 'commodity money'?

Accepted Answer

Money with intrinsic value made from a valuable commodity

Answer

Money backed by government decree

Answer

Digital tokens representing real assets

Answer

Banknotes issued by central banks

Question 6

What monetary system involves two metals, typically gold and silver, serving as legal tender at a fixed exchange ratio?

Accepted Answer

Bimetallism

Answer

Monometallism

Answer

Fiat standard

Answer

Managed float

Question 7

Which function of money allows people to set aside value today to be used in the future?

Accepted Answer

Store of value

Answer

Medium of exchange

Answer

Unit of account

Answer

Standard of deferred payment