Welcome to your Grade 9 Economics chapter 6
After carefully reading the following 30 questions, choose the correct answer.
1.
Which of the following is the most general definition of money?
2.
What was the system called where goods were exchanged for other goods before the invention of money?
3.
What is the primary difficulty of the barter system?
4.
Which of the following served as early forms of "commodity money"?
5.
What is "Metallic Money"?
6.
What is the main characteristic of "Paper Money"?
7.
Which function of money allows it to be used as a common denominator for measuring the value of goods?
8.
Money serves as a "store of value" because:
9.
Which function of money makes it possible to make payments in the future for debts incurred today?
10.
What are the three main motives for people to demand (hold) money?
11.
Demanding money for day-to-day purchases like food and transport is called:
12.
Holding money for unforeseen emergencies like illness or accidents is known as:
13.
The speculative demand for money is mainly influenced by:
14.
Who is responsible for the "supply of money" in an economy like Ethiopia?
15.
What is "Electronic Money" (e-money)?
16.
Which of the following is an advantage of e-money?
17.
What is the main difference between money and other assets (like land) regarding liquidity?
18.
Commodity money's value is based on:
19.
In the evolution of money, which form followed commodity money?
20.
Why is paper money generally accepted today?
21.
"Legal tender" means:
22.
What is the role of commercial banks in the money supply?
23.
Speculative demand for money varies _____ with the rate of interest.
24.
High interest rates lead to _____ speculative demand for money.
25.
Which form of money is the most modern in the evolution sequence?
26.
Money acts as a "Medium of Exchange" by:
27.
Barter trade requires:
28.
Which of the following is NOT a function of money?
29.
The supply of money is a _____ concept.
30.
What is the motive for holding money to take advantage of changes in asset prices?
