IGCSE Economics Practise questions

 True/False: Money serves as a medium of exchange, unit of account, and store of value.

True/False: Divisibility is a characteristic of money, allowing it to be easily broken down into smaller units.

True/False: Money's durability ensures that it can withstand wear and tear over time.

True/False: One of the functions of money is to act as a standard of deferred payment, allowing for transactions in the future.

True/False: Money's portability makes it easy to carry around and use for transactions.

True/False: Money's characteristic of uniformity means that every unit of money is the same as every other unit.

True/False: Money can only be in the form of physical currency such as coins and paper notes.

Before the introduction of money, people engaged in ________________, which involved exchanging goods and services directly without a standardized medium of exchange.

Money overcame the limitations of barter by serving as a widely accepted ________________ that facilitated smoother transactions.

Barter systems often suffered from the problem of ________________, where finding a double coincidence of wants was challenging for parties involved in trade.

Money's function as a ________________ allows it to be easily carried and used in various transactions, making it convenient for everyday use.

The characteristic of ________________ ensures that money remains intact and usable over time, unlike perishable goods that barter systems often dealt with.

Money's role as a ________________ involves providing a common standard by which the value of goods and services can be measured and compared.

In the absence of money, individuals had to engage in complex ________________ to obtain the goods and services they needed, which was often inefficient and time-consuming.

The introduction of money as a ________________ eliminated the need for direct exchange of goods, making transactions more efficient and allowing for specialization.

Money serves as a ________________ of value, allowing individuals to save wealth and purchasing power for the future, unlike the challenges posed by perishable goods in barter systems.

The transition from barter to a money-based economy marked a significant advancement in ________________, enabling economic growth and a more interconnected global trade network.  answers