FINANCIAL SERVICES
CLASSWORK
GRADE 11
NAME: ___________________________________________ SCORE: ______________/30 = _______________%
GRADE: ___________________________________________ DATE: ____________________________________
PART 1: MULTIPLE CHOICE
1. What was the primary method of exchange 6. Which ancient civilization created the first
before the development of currency? known coin?
a. Credit cards a. Egypt
b. Bartering b. Greece
c. Fiat money c. Rome
d. Digital payments d. Lydia
2. The first known coin was created 7. What was the primary reason for the
approximately: development of paper money?
a. 1000 years ago a. It was more durable than coins
b. 2000 years ago b. It was easier to carry and store than large
c. 3000 years ago amounts of coins
d. 5000 years ago c. It was harder to counterfeit
d. It was more valuable than coins
3. Which of the following is an example of
commodity money? 8. In what year did the Bank of America introduce
the first official credit card?
a. Paper bills
b. Credit cards a. 1950
c. Gold coins b. 1958
d. Digital currencies c. 1965
d. 1970
4. When was the first bank note invented?
9. What is the term for materials that can be
a. 500 BC bought or sold in their raw form?
b. 1 AD
c. 1000 AD a. Fiat
d. 1661 AD b. Legal tender
c. Commodities
5. What type of currency is most commonly used d. Assets
in modern economies?
10. Which of the following is NOT a function of
a. Commodity money money?
b. Fiat money
c. Barter system a. Medium of exchange
d. Cryptocurrency b. Store of value
c. Unit of account
d. Source of inflation
PART 2: TRUE OR FALSE
___________: Bartering is no longer practiced in today's economy.
____________: The value of fiat money is backed by precious metals.
____________: Foreign exchange rates remain constant over time.
____________: The majority of money in modern economies exists in physical form.
____________: The British Virgin Islands use the US dollar as their official currency.
____________: Commodity money has intrinsic value.
____________: Credit cards were invented before paper money.
____________: The first coin ever minted featured a roaring lion.
____________: Fiat money gives governments more control over the currency supply.
____________: All countries have their own unique currency.
PART 3: FILL IN THE BLANKS
1. The first coin ever minted was called a ______________ and featured a ______________
2. Modern currencies that are not backed by commodities are called ______________ currencies.
3. The exchange of one currency for another is known as _____________________.
4. Before bank cards were popular, some companies offered ____________________ that could be used in
shops.
5. The three main ways to earn money discussed in the text are through ______________ income, _______
income, and ______________ items.
6. The first bank notes were invented in ______________ in the year _______._______
7. _____________________ is when we get paid for a job we do, giving our time in exchange for money.
8. _____________________ is where you invest your money initially to gain an asset that generates income.
9. The British Virgin Islands adopted the US dollar in the year ______________.
10. The ability to pay for goods using a television or telephone is an example of ______________ banking.
PART 4: MATCHING
Match the following terms with their correct descriptions:
_______ Commodity money A. Money whose value is dictated by the government
_______ Fiat money B. The grandmother of credit cards
_______ Legal tender C. Money with intrinsic value, like gold coins
_______ Credit vouchers D. Currency that must be accepted for payment by law
_______ Foreign exchange E. The practice of trading currencies between countries
_______ Bartering F. The direct exchange of goods or services without using money
_______ Bank notes G. Paper currency issued by a country's central bank
_______ Debit card H. A card that allows direct access to funds in a bank account
_______ Supply and demand I. Economic principle that affects the price of goods and currency
_______ Electronic banking j. Conducting financial transactions via digital platforms
PART 5: SHORT ANSWER
1. Explain the concept of 'value' in relation to money and goods.
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2. Describe two advantages and two disadvantages of the barter system.
______________________________________________________________________________________________
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3. How does the flow of money work in a simple economic transaction, such as buying groceries?
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4. What factors contributed to the British Virgin Islands adopting the US dollar as their currency?
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