FIN 121 This is a government-created money → Currency,

Quiz 1 Coins with a face value greater than the material

used → Fiat money,
Exchanging of goods before was done if the family
A direct trade of goods and services → Barter,
has no surplus of their production. False
The process of minting metals to certain shapes for
Metals possess the attribute of portability. True uniformity in shapes and sizes → Coinage,
A characteristic of money capable of enduring the These are bills and notes → Paper money,
physical challenges along the trails of circulation.
Durability This money can be in any form such as farm
animals, grains, high-value crops, salt, and others
A characteristic of money that is capable of passing to exchange goods → Commodity money,
through the process of casting to make it sure it has
A piece of metal bearing a stamp indicative of its
the authoritative stamp or markings in it. weight and fineness → Coins,
Malleability
A promissory note with a promise to the bearer
A coin is said to be durable if it will bear normal standard money on demand → Credit money,
wear and tear when used in any transaction.  True These are checks or other paper notes issued by
financial intermediaries → Bank money,
Coins making is regulated by the government to
insure uniformity in weight and fineness. True Anyone that stores their precious metals with a
pawnshop will get this note as evidence →
A retirement age of coins is five (5) years. False Receipts

The Philippine government today allows people to Quiz 2

mint their gold into coins if they desire to with a fee.
The credit card is an advantage to take but
False generally tempting to use for non-essential and
overspending acquisition of goods. True'.
Money serves as a standard of deferred payments
in all debts. True Credit card usage if not paid in full can blow up the
financial obligations of the cardholder. 'True'.
This authentic stamp of the government should be
embedded in a money and should be easily visible Credit presents opportunity for debtor to engage in
and distinguishable to prevent forgery or business activity. 'True'.
counterfeiting. DurabilityRecognizability If refers to the ability to obtain a thing of value in
exchange for a promise to pay with money or
Gold material was minted before into coins. True something equally satisfactory to the seller at some
future time. Credit
Barter system was practiced before to help facilitate
exchange of goods for goods. True Interest on credit card purchases will blow up and
revolve monthly if only portion of its balance is
Paper money is created without any quantity of being paid. 'True'.
gold kept as reserved by the government. False
This refers to the resources owned by the borrower
Money is used to determine its standard of value. such as properties and other liquid assets over and
True above his obligation. Capital
Fiat standard is a system in which the value of the Credit is good for it postpones financial outlay on
monetary unit is not kept equal. True the part of the debtor to adjust with financial
matters. 'True'.
A characteristic of money, which is capable of
being increased or decreased depending on the A credit extended by commercial banks for
state or needs of the economy. Elasticity purposes of assisting businessmen to fund their
operation, but will check on the credit history and
The material content of a paper money is of higher
the assets of the company or person. Bank credit
value than its face value amount. False
This refers to ownership of the person like building,
Goods or items rare or difficult to find will result to
machines that can be used as security that helps
the higher price of it. True
ensure the repayment of the loan in the event of
One characteristic of a metal is it can be divided default. Collateral
into fractions. Divisibility Credit card is prone to fraud if not properly take
care of.  'True'.
This characteristic of money is that it can be carried
anywhere with ease and convenience. Portability
Credit should not be used for business operation Their membership and other benefits are restricted
because the interest rate is high and that that high only to government employees. → Government
return of it cannot be expected.  'False'. Service Insurance System,
The creditor is required to disclose to debtor A security that help creditor ensure repayment of
whatever charges are involved in the extension of the loan in the event of default → Collateral,
credit.  'True'.
Credit involves futurity. 'True'. They lend money to individuals at a very exorbitant
rate → Loan sharks,
Extension of credit is a right and privilege of any
person in a business industry. 'False'. Their loans are exclusive to private members only.
→ Social Security System,
There is no element of risk in granting credit to
qualified individuals. 'False'. This loan arrangement pays a portion of the interest
This refers to the personal integrity of the borrower and other finance charges at the time the loan is
that includes his personal habits, attitudes, granted. → Discount loan,
lifestyles, or vices as part of the creditor's
evaluation if borrower be granted a loan. Character This refers to release of loan proceeds in a one
time instance. → Lump sum,
A type of credit with the arrangement of which is
dependent on any specific item that would serve as A characteristic of credit said to be based on trust
security, like property, real or personal, tangible or → Fiduciary,
intangible which will be set aside to guarantee
payment of the obligation. Secured credit A loan by a bank to its own client without a third
party like dealers or other middle handlers. →
Credit card helps the cardholder enjoy the Direct credit,
purchase without interest for a maximum of 51
days. 'True'. This practice of payment is done in a staggered
mode in an agreed time and amount. → Installment
This evaluation of granting credit to an individual is
based on his managerial ability, if he is responsible,
mature, and or competencies that can be used to
determine his ability to pay. Capacity
A characteristic of credit concept in which it is
surrounded by so many dangers and uncertainties.
Risk
This credit arrangement of repayment of the loan
will be made at one (1) single instance at an agreed
time in the future. Lump sum
It refers to the openness and willingness of the
creditor to exposed to uncertainties by giving out
money or property to the debtor in exchange for a
promise that the same will be pain in the future.
Confidence
Credit may lead to inflation.  'True'.
Their loans granted are on the personal properties
of the individuals as collateral → Pawnshops,

They grant credit to help rationalize the developing

regions for agricultural projects in the countryside.
→ Rural Banks,

This financial institution is owned and controlled by

its members to promote thrift and other financial
services to its members only. → Credit unions,

A credit usually intended for financing high capital

projects like mining, logging, fishing, etc. →
Industrial credit,

Their credit is for the purpose of foreign shipment

and services → Export credit,

A prearranged credit with payment to be made

within one year or less → Secured credit,