1. How has money developed during world history ?
In Britain, through their banking system
In many separate parts of the world
In South Africa, through the Reserve Bank
2. How far back in history can we trace the "barter" system ?
Since the "middle ages" in Europe
Since gold was discovered in South Africa
Since trade began about 9000 years ago
3. What type of exchange first began to replace the barter system ?
Ownership of property such as farm land
Commodities such as beads, shells and gold bars
4. What is the important difference between paper money and precious metals such as gold ?
Gold and silver are not IOUs, and are valuable in themselves
Precious metals are heavier and stronger than paper
Paper money can be torn or destroyed
5. What are the 4 important words on promissory notes and early banknotes ?
One hundred pounds only
South African Central Bank
I promise to pay - - -
6. Who were the first issuers of banknotes in London
7. Who carried on issuing banknotes until around 1900 ?
Only the Bank of England
Banks in Europe and America
Big companies like Mercedes and Toyota
8. What was first used to guarantee the value of a country's money ?
The Gold Standard
Promises made by the President of each country
The signature of the Governor of the Reserve Bank
9. What can happen to money in the absence of a gold standard ?
Its value can rise or fall against other currencies
There are no problems as the government can just print more banknotes
Everybody can afford more purchases from shops
10. What usually causes financial crises in the world ?
The outbreak of wars in several places
Natural disasters such as global warming and tsunamis
Countries running up huge debts and then defaulting on those debts
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