Question

please match the description with the appropriate answer.
a. medium of exchange
b. inflation
c. uniformity
d. unit of account
e. durability
f. limited supply
g. store of value
h. portability
i. acceptability
j. divisibility
k. commodity money
l. fiat money
______ 1. money because the government says it is
______ 2. money is a means for comparing value
______ 3. increase in prices that causes money to lose its value
______ 4. money is anything that is used to determine value in an exchange for goods and services
______ 5. set amount that can be increased or decreased to control the economy
______ 6. willingness to be used because a wide range of people agree to accept it as payment
______ 7. money that has value in itself
______ 8. ability to be easily carried or transported from one person or place to another
______ 9. money keeps its value of stored instead of used
______ 10. money must withstand physical wear and tear
______ 11. allows money to be broken up into smaller, useable units without losing its value
______ 12. every unit of currency with the same nominal value has the same worth

Explanation:

1. Fiat money is money because the government says it is.
2. Unit of account is money as a means for comparing value.
3. Inflation is an increase in prices that causes money to lose its value.
4. Medium of exchange is money used to determine value in an exchange for goods and services.
5. Limited supply is a set amount that can be increased or decreased to control the economy.
6. Acceptability is the willingness to be used because a wide range of people agree to accept it as payment.
7. Commodity money is money that has value in itself.
8. Portability is the ability to be easily carried or transported from one person or place to another.
9. Store of value is money that keeps its value when stored instead of used.
10. Durability is money that must withstand physical wear and tear.
11. Divisibility allows money to be broken up into smaller, useable units without losing its value.
12. Uniformity means every unit of currency with the same nominal value has the same worth.

Answer:

1. L. Fiat Money
2. D. Unit of Account
3. B. Inflation
4. A. Medium of Exchange
5. F. Limited Supply
6. I. Acceptability
7. K. Commodity Money
8. H. Portability
9. G. Store of Value
10. E. Durability
11. J. Divisibility
12. C. Uniformity