A level Money Theory Quizzes

Revising Money Theory with quizzes

(Simple A level Money Theory quizzes for students going in for the GCE, GCSE, and necta)

Hello folks and Welcome to gcequiz.com, an online revision platform that will ease your revision by providing you with hundreds of quizzes to answer. In this section, we will be discussing money theory. Here, you'll get to know the reasons for using money, characteristics of good money,  and so on. Below are well-structured exam standard quizzes on money theory that'll boost your level of reasoning. Before going any further, let's know what money is:

Try to imagine an economy without money. Without money, apparently, it would be almost impossible to carry out our normal activities in relation to day to day business of life. For example, if you wanted to buy a shoe without cash, you would have to give the vendor something else in return in order to get the shoe. This example recapitulates the importance of money in our economy.

Some questions sometimes arise like "what does money do?". That question has an explicit list of answers. Below are some of the most important functions of money:

• It is a medium of exchange.
• It is a unit of account.
• It is a store of value.
• It acts as a form of liquidity.

With the understanding of each of the above functions of money, it is possible to see how important money is to the economy. 

 Money comes in different forms which are:

Commodity money: which is the type of money when something with intrinsic value, such as precious metals, is used as money. for example, Gold. 

Flat Money: The type of money when something lacking intrinsic value is used as money. An example is the normal banknotes we have. 

Students are expected during the exams to be able to answer MCQs, short answer, and essay questions on money theory. This, therefore, requires a lot of revision and practice. For more quizzes, click on A level Quizzes.

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