Money, Debt And Deficit Quiz

14 Questions | Total Attempts: 219

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Money, Debt And Deficit Quiz

A short online quiz on the forms and uses of money, and the 2012 debt and deficit issues.


Questions and Answers
  • 1. 
    Money replaced this ancient system of trade.
    • A. 

      Hunting

    • B. 

      Marketplaces

    • C. 

      Barter

    • D. 

      Medium of exchange

  • 2. 
    When specific goods or products, such as shells, cigarettes or precious metals, are used by people to make trading easier and allow trade to take place, we call these products...
    • A. 

      Tradables

    • B. 

      Commodity Money

    • C. 

      Coins

    • D. 

      Swap goods

  • 3. 
    When money makes trade easier as a sort of "go-between", we call this use of money
    • A. 

      Medium of Exchange

    • B. 

      Measure of Value

    • C. 

      Store of Value

    • D. 

      Unit of Account

  • 4. 
    What form of money dominates our money supply today?
    • A. 

      Coins

    • B. 

      Currency

    • C. 

      Paper Checks

    • D. 

      Demand Deposit accounts

  • 5. 
    What "backs" United States money today?
    • A. 

      Gold

    • B. 

      Nothing

    • C. 

      Bonds

    • D. 

      Faith and credit of the U.S. Government

  • 6. 
    "Plastic" is a form of money.
    • A. 

      True

    • B. 

      False

  • 7. 
    American paper currency today is
    • A. 

      Redeemable in gold or silver.

    • B. 

      Backed by gold and silver.

    • C. 

      Mostly made in and owned by China.

    • D. 

      Managed by the Federal Reserve System.

  • 8. 
    If our government eliminated cash and currency and made all transactions done on computers, we could expect
    • A. 

      Faster and better economic growth.

    • B. 

      An alternative commodity money to spring up.

    • C. 

      Other countries to dominate our economy.

    • D. 

      People to rebel.

  • 9. 
    The yearly overspending by a government is called...
    • A. 

      The Deficit.

    • B. 

      The National Debt.

    • C. 

      The Budget

    • D. 

      The Fiscal Cliff.

  • 10. 
    If a country overspends its budget year after year, we call the result
    • A. 

      The deficit.

    • B. 

      The national debt.

    • C. 

      The budget.

    • D. 

      The fiscal cliff.

  • 11. 
    The United States today has a national debt of approximately
    • A. 

      $16 Billion.

    • B. 

      $200 Billion

    • C. 

      $16 Trillion

    • D. 

      $1 Gazillion

  • 12. 
    The U.S. Government today is facing a problem called "Fiscal Cliff". This means...
    • A. 

      We will fall over into a Depression unless Obama is re-elected.

    • B. 

      Congress and the President must agree on tax cuts and/or spending cuts or there will be automatic penalties that could bring a recession.

    • C. 

      Congress and the President must raise taxes on the rich or else the poor will fall off the cliff.

    • D. 

      Spending must be cut for all people or we will go over a cliff.

  • 13. 
    Most government spending goes "out the door" today ...
    • A. 

      With a specific act of Congress.

    • B. 

      By order of President Obama.

    • C. 

      Automatically, with no action by Congress.

    • D. 

      Directly to China.

  • 14. 
    If a person receives money or benefits from the government because he/she qualifies by reason of some action or payment, we call this a(n)...
    • A. 

      Entitlement.

    • B. 

      Budget item.

    • C. 

      Deficit.

    • D. 

      Debt.

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