Chapter 11 Questions

Name ____________________
Date ________ Period ____
Chapter 10 Questions
Section 1 Money
1. How does money serve as a store of value?
2. Why does the United States currency have value?
3. What are the disadvantages of commodity money?
4. Suppose you are shopping for a new backpack and want to get the best value for your
money. Explain how the fact that money functions as a unit of account helps you to make
your choice.
Section 3 Banking Today
5. Describe M1 and M2 money.
6. Describe 3 functions of financial institutions.
7. What is the difference between simple and compound interest?
8. How does a debit card differ from a credit card?