THE ECONOMICS OF MONEY BANKING AND
FINANCIAL MARKETS ACTUAL EXAM PAPER
2026 COMPLETE QUESTIONS SOLUTIONS
GRADED A+
◉ Barter.
Answer: The direct exchange of goods and services without using
money.
◉ Medium of Exchange.
Answer: An item that is widely accepted in trade for goods and
services.
◉ Unit of Account.
Answer: A standard numerical unit of measurement that provides a
consistent measure of value.
◉ Store of Value.
Answer: An asset that maintains its value over time and can be saved
and retrieved in the future.
◉ Commodity Money.
, Answer: Money that has intrinsic value, such as gold or silver.
◉ Representative Money.
Answer: Money that represents a claim on a commodity, such as a
gold certificate.
◉ Fiat Money.
Answer: Currency that has no intrinsic value and is not backed by
physical commodities, but is established as money by government
regulation.
◉ National Bank.
Answer: A bank chartered by the national government, often
responsible for issuing currency.
◉ Bank Runs.
Answer: A situation where a large number of customers withdraw
their deposits simultaneously due to fears of the bank's insolvency.
◉ Gold Standard.
Answer: A monetary system where a country's currency or paper
money has a value directly linked to gold.
FINANCIAL MARKETS ACTUAL EXAM PAPER
2026 COMPLETE QUESTIONS SOLUTIONS
GRADED A+
◉ Barter.
Answer: The direct exchange of goods and services without using
money.
◉ Medium of Exchange.
Answer: An item that is widely accepted in trade for goods and
services.
◉ Unit of Account.
Answer: A standard numerical unit of measurement that provides a
consistent measure of value.
◉ Store of Value.
Answer: An asset that maintains its value over time and can be saved
and retrieved in the future.
◉ Commodity Money.
, Answer: Money that has intrinsic value, such as gold or silver.
◉ Representative Money.
Answer: Money that represents a claim on a commodity, such as a
gold certificate.
◉ Fiat Money.
Answer: Currency that has no intrinsic value and is not backed by
physical commodities, but is established as money by government
regulation.
◉ National Bank.
Answer: A bank chartered by the national government, often
responsible for issuing currency.
◉ Bank Runs.
Answer: A situation where a large number of customers withdraw
their deposits simultaneously due to fears of the bank's insolvency.
◉ Gold Standard.
Answer: A monetary system where a country's currency or paper
money has a value directly linked to gold.
