- 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 4 characteristics of money quizlet?
- Durability.
- Portability.
- Divisibility.
- Uniformity.
- Limited Supply.
- Acceptability.
Does Bitcoin satisfy the characteristics of money quizlet?
How are Bitcoins, Dollars, and Commodity currency similar? All of the currency types are similar in that they are capable of fulfilling the fundamental roles of money and providing a store of value , a unit of account and an effective medium of exchange.
Which characteristic of money do you consider most important and why?
Money as a medium of exchange is the most important characteristic of money, which will ensure its perpetual use. This is because, money as a medium...
What are the characteristics of modern money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability .
What are the two types of money?
There are two types of money: commodity money , which is an item used as money, but which also has value from its use as something other than money; and fiat money, which has no intrinsic value, but is declared by a government to be the legal tender of a country.
What are the four functions of money?
Money serves four basic functions: it is a unit of account, it’s a store of value, it is a medium of exchange and finally, it is a standard of deferred payment.
Which of the following are characteristics of money quizlet?
- 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.
How does modern money reflect the functions and characteristics of money?
While our modern money may seem to be quite different from earlier forms of money, it shares the same fundamental characteristics and functions of money . For example, Portability—Modern money is portable. Our currency is lightweight, convenient, and can be easily transferred from one person to another.
What are the functions of money quizlet?
The three functions of money are: Medium of exchange, unit of account, and store of value .
Which of the following functions of money does Bitcoin satisfy?
Money serves three functions in an economy: medium of exchange , store of value, and unit of account. To be an effective medium of exchange, money must be acceptable in exchange for goods and services. Bitcoin can be used as a medium of exchange for a limited number of goods.
Does Bitcoin satisfy the characteristics of money answer key?
Money is supposed to serve three purposes: it functions as a medium of exchange, a unit of account, and a store of value. Bitcoin arguably satisfies the first criterion , because a growing number of merchants accept it as payment. ... Bitcoin also lacks additional characteristics usually associated with currencies.
What are the 6 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:
Why is divisibility an important characteristic of money?
If we could not carry money with us, it would be hard to use. Why is divisibility an important characteristic of money? It would be hard to use money if you always had to use exact change . Which type of money has no value of its own but is valuable because it can be exchanged for something else of value?
What are the good qualities of money?
- General acceptability.
- Portability.
- Durability.
- Divisibility.
- Homogeneity.
- Cognizability.
- Stability.
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.
