What Are The 4 Characteristics Of Money? - Fixanswer

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. ...
Acceptability.

What are the 3 types of money?

Physical money. Physical money, meaning cash and coins, is created by the US Treasury. ...
Central bank reserves. Central bank reserves are a type of electronic money, created by the Federal Reserve and used by banks to make payments between themselves. ...
Commercial bank money.

Which characteristic of money is the most important and why?

Money as a medium of exchange is the most important characteristic of money, which will ensure its perpetual use.

What are the 10 characteristics of money?

Medium of Exchange. First and foremost, money acts as a medium of exchange that facilitates commercial transactions. ...
Store of Value. Money can be used to store value for later use. ...
Unit of Account. ...
Legal Tender. ...
Standard of Deferred Payment. ...
Liquidity. ...
Stability of Value. ...
Interchangeable.

What are the 5 functions of money?

The 5 functions of money are a measure of value, an exchange medium, store of value, transfer of value, the standard of deferred payments .

What are the characteristics of commodity money briefly explain each of the characters?

A commodity money is a physical good that has ‘intrinsic value’ – a use outside of its use as money. Historic examples include alcohol, cocoa beans, copper, gold, silver, salt, sea shells, tea, and tobacco. There are four main characteristics of commodity money – it’s durable, divisible, easily exchangeable, and rare .

Is scarcity a characteristic of money?

There are nine distinct characteristics of money: scarce, durable, portable , divisible, easy to recognize, easy to store, fungibile, hard to counterfeit, and widespread use. ... Gold – this it is being used here as an example of a commodity money.

What is money and its features?

Money is an economic unit that functions as a generally recognized medium of exchange for transactional purposes in an economy . ... Money originates in the form of a commodity, having a physical property to be adopted by market participants as a medium of exchange.

Why is portability an important characteristic of money?

uniformity. Why is portability an important characteristic of money? If we could not carry money with us, it would be hard to use . ... It would be hard to use money if you always had to use exact change.

What is the characteristic of money that states it must maintain the same shape size and value quizlet?

Stability – Money must be stable and maintain its declared face value. If one day an you save a 10 dollar bill and then go to use it in a week, it should still equal the same amount.

What is M1 and M2?

What is M2? M2 is a calculation of the money supply that includes all elements of M1 as well as “near money.” M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds, and other time deposits.

What are the historical types of money?

In the Beginning: Barter. ...
9000 – 6000 B.C.: Cattle. ...
1200 B.C.: Cowrie Shells. ...
1000 B.C.: First Metal Money and Coins. ...
500 B.C.: Modern Coinage. ...
118 B.C.: Leather Money. ...
A.D. 800 – 900: The Nose. ...
806: Paper Currency.