What is Money?

What is the characteristic of money that states it must maintain the same shape, size, and value?

Uniformity

What did the local Indians use for currency when the English settled in North America in the 1600s?

Wampum

Money allows people to more easily compare the value of different goods and services because it is a unit of ________

Account

Which of the following is the correct definition for money?

Anything widely accepted as payment for goods and services

This type of financial institution brings together buyers and sellers of different investments and facilitates the exchange of those investments.

Brokerage Firm

This type of financial institution is used by most Americans and includes large companies such as Wells Fargo and Bank of America

Commercial bank

Customers can use a ___________ to have a bank make purchases for them. Then the customers pay the bank for those purchases (usually with interest)

Credit card

Which of the following are characteristics of money? (choose all that apply)

Divisibility Acceptability

Money makes trade easier and encourages specialization because it acts as a medium of _________

Exchange

One important function of financial institutions is connecting borrowers and savers. In these transactions, the institution is acting as a type of middleman called a ____________.

Financial intermediary

Some financial institutions collect premiums from their customers and then pay those customers back whenever the customers file a claim after suffering some kind of loss, such as their home burning down. This service is called _________

Insurance