What are the characteristics of money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Let’s compare two examples of possible forms of money: A cow. Cattle have been used as money at different points in history.
What are the 4 main characteristics of money?
In general, there are four main characteristics that money should fulfill: durability, divisibility, transportability, and inability to counterfeit.
What are the 4 characteristics of money quizlet?
- Medium of exchange.
- Store of value.
- Standard of value (unit of account)
What are the 6 characteristics of money quizlet?
Terms in this set (6)
- Durability. Durability. …
- Portability. People need to be able to take money with them as they go about their business.
- Divisibility. To be useful, money must be easily divided into smaller denominations , or units of value.
- Uniformity. …
- Limited Supply. …
What are the 8 characteristics of money?
The qualities of good money are:
- General acceptability.
What is the most important characteristic of money?
Money as a Store of Value
As such, it provides a means to store a monetary value for use in the future without having that value deteriorate. So, when people exchange items for money, that money retains a particular value that can be used in other transactions.
What are the 3 types of money?
Economists differentiate among three different types of money: commodity money, fiat money, and bank money. Commodity money is a good whose value serves as the value of money. Gold coins are an example of commodity money.
What are 5 uses of money?
There are only really 5 things we can do with money. We can use it to live, we can give it, we can repay debt, we can pay taxes, or we can save/grow it. It’s important to know how your money is being allocated among these categories because this will show us our priorities.
What is not a characteristic of money?
Good Money has many characteristics like Stability, homogeneity, profitability, divisibility, durability, etc. The supply of Money is not included in the characteristics of Money.
What is importance of money?
Money allows us to meet our basic needs—to buy food and shelter and pay for healthcare. Meeting these needs is essential, and if we don’t have enough money to do so, our personal wellbeing and the wellbeing of the community as a whole suffers greatly.
What are the 3 main functions of money?
Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account. Medium of exchange.
What are the 4 types of money?
The 4 different types of money as classified by the economists are commercial money, fiduciary money, fiat money, commodity money. Money whose value comes from a commodity of which it is made is known as commodity money.
What is the concept of money?
What is money? Money is a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed. It circulates from person to person and country to country, facilitating trade, and it is the principal measure of wealth.
What are the 10 characteristics of money?
The following are the key characteristics of money: 1. Durability 2. Portability 3. Divisibility 4. Uniformity and Fungibility 5. Limited supply 6. Acceptability
- Uniformity and Fungibility.
- Limited supply.
What are the 5 types of money?
There are 5 different types of money in the world: Fiat, commodity, representative, fiduciary, and commercial bank money. They also all have three functions in common; they serve as a medium of exchange, as a store of value, and as a unit of account.
What are the 6 uses of money?
The following points highlight the top six functions of money.
- Function # 1. A Medium of Exchange: …
- Function # 2. A Measure of Value: …
- Function # 3. A Store of Value (Purchasing Power): …
- Function # 4. The Basis of Credit: …
- Function # 5. A Unit of Account: …
- Function # 6. A Standard of Postponed Payment:
What is the basic characteristic of money Class 12?
(a) It serves as a medium of exchange. (b) It serves as a standard unit of value. (c) It serves as a means for future / contractual payments or standard of deferred payments. (d) It serves as a store of value.