Lesson 9—Summative Assessment
Unit 3, Lesson 9—Summative Assessment

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Lesson 9—Summative Assessment

Unit 3: From Shells to Crypto Question Bank

  1. Money is technically defined as:
    a. The single most important element of a modern society’s growth
    b. A medium of exchange, unit of account, and store of value
    c. A good reason to check your pockets before doing laundry
    d. None of the above
  2. Which items and order best represent the evolution of money?
    a. Barter, gold, coins, charge cards, dollars, crypto
    b. Clay tablets, coins, paper money, credit, crypto
    c. Barter, seashells, clay tablets, precious metals, coins with holes, Chinese paper money, coins without holes, promissory notes, fiat backed by gold, fiat not backed by gold, charge cards, digital money, crypto
    d. Barter, seashells, precious metals, coins with holes, Chinese paper money, coins without holes, promissory notes, greenbacks, pineapples, charge cards, digital money, crypto
  3. To be considered “good,” money must be:
    a. Fungible, divisible, portable, recognizable, and scarce
    b. Portable, tangible, flexible, interchangeable, and scarce
    c. Optimal, comfortable, expendable, fungible, and recognizable
    d. Dependable, reliable, remarkable, portable, and divisible
  4. Based on the definition above, which of these come closest to being “good money”?
    a. Pineapple, gold
    b. Seashell, Bitcoin
    c. U.S. dollar, pineapple
    d. Gold, Bitcoin
  5. Which of these best summarizes the (no longer active) gold standard?
    a. The value of the U.S. dollar was backed by and linked to gold, meaning you could trade in a dollar for a fixed amount of gold.
    b. Gold was the most valuable metal, and having lots of it meant you were wealthy, no matter what.
    c. The way to measure any sort of money was by comparing it to a brick of gold and considering its color, weight, and dimensions.
    d. Out of gold, silver, and bronze, gold was considered most important.
  6. What’s one good argument against reinstating the gold standard?
    a. The gold standard allows a government to print as much money as they want.
    b. The Federal Reserve would be powerless to fight recessions.
    c. Gold is no longer as valuable as silver, bronze, platinum, and titanium.
    d. Gold supplies are too reliable and extensive to be pegged to the fluctuating value of the dollar.
  7. Who prints and controls the United States’ physical money?
    a. Individuals
    b. Private banks
    c. The central bank, a.k.a. Federal Reserve
    d. Canada
  8. How do banks gamble with your money?
    a. Inconsiderate lending
    b. Under-the-table lending
    c. Fractional reserve lending
    d. Spending and lending
  9. What is inflation?
    a. A rise in a country’s money supply which leads to rises in prices
    b. When a wallet expands rapidly after too many dollars are shoved in
    c. A fall in a country’s money supply which leads to rises in prices
    d. What happens to dough when you bake it
  10. Where have we seen examples of inflation or hyperinflation?
    a. Housing market, stock market, Chase bank, zoos
    b. Shoe market, sock market, birdfeeders, Mars
    c. Housing market, pencil market, rockets, wristbands
    d. Housing market, stock market, Zimbabwe, Venezuela
  11. What is Bitcoin?
    a. Decentralized money you can send through the internet
    b. A type of cryptocurrency
    c. A peer-to-peer payment system
    d. All of the above
  1. Does Bitcoin meet the definition of “good money”?a. Yes—it’s recognizable, divisible, fungible, portable, and scarce
    b. No—it’s scary, new, confusing, crunchy, and invisible
    c. What the heck are you talking about?
    d. None of the above
  1. What is the name and definition of the technology that Bitcoin runs on?
    a. Blockchain—a centralized, private ledger that exists across a network
    b. Trianglechain—a digitally distributed, decentralized, public ledger that exists across a network
    c. Chainblock—a digitally distributed, decentralized, paper ledger that exists
    d. Blockchain—a digitally distributed, decentralized, public ledger that exists across a network
  2. What are some advantages of Bitcoin?
    a. There’s a central authority controlling it
    b. Speed—it’s a lot faster to send money via Bitcoin than via a bank
    c. Scarcity—there’s a limited supply
    d. b & c 
  3. What’s one main reason that Bitcoin was invented?
    a. The amount of hope required to make conventional currency work
    b. The amount of trust required to make conventional currency work
    c. The amount of bread required to make conventional currency work
    d. The amount of people required to make conventional currency work
  1. Do any countries currently use Bitcoin as their legal tender?
    a. No
    b. Yes—the United States
    c. Yes—North Carolina
    d. Yes—El Salvador

Teachers: Answer Key here.