← Penny Candy Vocab Test
5 Written Questions
5 Matching Questions
- Gresham's Law
- Runaway Inflation
- Demand for Money
- Base Metal
- a A wafer or disk of precious metal
- b The desire to hold money rather than trade it.
- c Bad money drives good money out of circulation. People hoard good money and trade with legally overvalued money.
- d A non-precious metal like copper or nickel
- e When prices rise rapidly, every few hours.
5 Multiple Choice Questions
- Shaving the edges of a coin in order to get some of the precious metal from the coin
- A disk of base metal which can be used as a substitute for a coin
- A one-ounce ingot of silver
- A government program tax money away, usually to rich people or large companies
- Prices increases rising at 10 to 99 percent per year due to inflation
5 True/False Questions
Legal Tender Law → A law which provides for the punishment of anyone who refuses to accept the legal tender money
Banknote → Today, it is paper money. Originally, it was an IOU from a bank
Law of supply and demand → When the supply of something goes up, the price per unit of that thing goes down
Depression → The correction period following an inflation.
Velocity → The notches on the edge of a coin